NEXUS INFRATECH vs Micro and Small Enterprises Facilitation Council

Judgment text excerpt

CARBPL-11389-2023.docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION COMMERCIAL ARBITRATION (L) NO. 11389 OF 2023 Nexus Infratech …Petitioner Digitally Versus signed by SHRADDHA SHRADDHA KAMLESH 1) Micro And Small Enterprise Facilitation Council KAMLESH TALEKAR TALEKAR Date: 2025.09.30 Through Member Secretary 15:40:31 +0530 2) Sikco Engineering Services Through Proprietor Archana Sikder and Power Of Attorney Milton Sikder …Respondents Mr. Rohan Savant a/w Rakesh Agrawal, Sandeep Nirban, Pallak Ranawat, for Petitioner. Mr. Satish Nikhar, for Respondents. CORAM : SOMASEKHAR SUNDARESAN, J. Reserved on : August 26, 2025 Pronounced on : September 30, 2025 Judgment: Context and Background: 1. This Petition is a challenge under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), challenging an arbitral award dated December 30, 2022 (“Impugned Award”) passed by the Facilitation Council under the Micro, Small and Medium Enterprises Development Act, Page 1 of 18 September 30, 2025 CARBPL-11389-2023.docx 2006 (“MSMED Act”). 2. The Petitioner, Nexus Infratech (“Nexus”) is itself an enterprise that would otherwise be a protectee of the MSMED Act. Nexus was awarded the work of installation, testing and commissioning of a 2300 KWP grid- connected photovoltaic power plant at the Naval Station, Karanja, Uran. Nexus won the bid with the lowest quote at Rs. ~14.75 crores. The project was to be completed within nine months. A contract dated July 4, 2018 was executed between Nexus and the Chief Engineer, Military Engineering Services. 3. The Respondent, SIKCO Engineering Services Ltd. (“SESL”) and Nexus entered into an agreement dated September 18, 2018 (“ Agreement”), which was a back-to-back contract fo