M B SUGARS AND PHARMACEUTICALS PRIVATE LIMITED vs MICRO SMALL ENTERPRISES FACILITATION COUNCIL

Judgment text excerpt

J-10-ARP-208-2023.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION ARBITRATION PETITION NO. 208 OF 2023 M B Sugars & Pharmaceuticals Private Limited …Petitioner Versus Micro Small Enterprises Facilitation Council & Anr …Respondents Mr. Sagar Kasar a/w Vivekanand Krishnan, Chaitali Bhogle & Rishabh Tiwari i/by Amol Wagh, for the Petitioner. None for Respondents. CORAM : SOMASEKHAR SUNDARESAN, J. DATE : JUNE 18, 2025 Oral Judgement: 1. This is a Petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act ”) in view of Respondent No.1, Micro Small Enterprises Facilitation Council, Nashik (“ MSEFC, Nashik”), not having initiated conciliation proceedings as a precursor to arbitration in terms of Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (“MSME Act”). The Petitioner had executed a purchase order June 8, 2018 and supplied goods pursuant to a purchase order dated June 8, 2018 (page 57), which is a purchase order placed on the Petitioner by Respondent No.2. Various supplies Digitally signed by ASHWINI ASHWINI JANARDAN JANARDAN VALLAKATI VALLAKATI Date: 2025.06.24 10:45:10 +0530 Page 1 of 9 June 18, 2025 J-10-ARP-208-2023.doc were made and invoices were raised, and it is the case of the Petitioner that the amounts payable under the invoices remain unpaid. 2. Consequently, a reference was made to the MSEFC, Nashik on April 24, 2023. It is the case of the Petitioner that the MSEFC, Nashik has not acted at all. This Application has been filed under Section 11 of the Arbitration Act on the premise that the arbitral institution which is meant to appoint the arbitrator has failed to do so. Under Section 18 of the MSME Act 1, an arbitration agreement as envisaged in Section 7 of the Arbitrati