Case Law Details
Usha Martin Limited Vs Eastern Gases Limited (Calcutta High Court)
Calcutta High Court held that an arbitrator cannot shun away his responsibilities and leave the work of quantification of awarded interest on chartered accountant. Accordingly, held that arbitration award suffers infirmity.
Facts- Based on the terms of purchase order, there was delay in payment by the award debtor to the respondent. Later on, the bills were cleared but the payment of interest on delayed amount was not made. Hence, a reference was made by the respondent to WBSMSEFC u/s 18 of MSMED Act for settlement of disputed between the parties.
Accordingly, the award was passed in favour of the award holder. Being aggrieved, the present application was filed by the award debtor praying for setting aside the said arbitral award u/s 34 of the Arbitration & Conciliation Act, 1996.
Conclusion- Hon’ble Supreme Court in the case of Silpi Industries Etc. –v- Kerala State Road Transport Corporation and Anr has held that to claim the benefits under MSMED Act, 2006, the seller should have been registered under the provisions of this Act as on the date of entering into the contract.
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