Case Law Details
Silpi Industries etc. Vs Kerala State Road Transport Corporation and Anr. etc. (Supreme Court of India)
Conclusion: When the settlement with regard to a dispute between the parties was not arrived at under Section 18 of MSMED Act, 2006, necessarily, the Micro and Small Enterprises Facilitation Council should take up the dispute for arbitration under Section 18(3) of the 2006 Act or it might refer to institution or Centre to provide alternate dispute resolution services and provisions of Arbitration and Conciliation Act 1996 were made applicable as if there was an agreement between the parties under sub-section (1) of Section 7 of the 1996 Act. Therefore, Limitation Act, 1963 was applicable to the arbitration proceedings under Section 18(3) of the 2006 Act.
Held: The issue arose for consideration was whether Limitation Act, 1963 applied to arbitration proceedings held under the IDPASC and MSMED Acts. It was held that following the decision in case of Andhra Pradesh Power Coordination Committee & Ors. v. Lanco Kondapalli Power Ltd. & Ors.3 wherein it was held that the Limitation Act, 1963 was applicable to the arbitrations covered by Section 18(3) of the 2006 Act. A reading of Section 43 itself made it clear that the Limitation Act, 1963 should apply to the arbitrations, as it applied to proceedings in court. When the settlement with regard to a dispute between the parties was not arrived at under Section 18 of the 2006 Act, necessarily, the Micro and Small Enterprises Facilitation Council should take up the dispute for arbitration under Section 18(3) of the 2006 Act or it might refer to institution or Centre to provide alternate dispute resolution services and provisions of Arbitration and Conciliation Act 1996 were made applicable as if there was an agreement between the parties under sub-section (1) of Section 7 of the 1996 Act. In view of the express provision applying the provisions of the Limitation Act, 1963 to arbitrations as per Section 43 of the Arbitration and Conciliation Act, 1996, it was held that Limitation Act, 1963 was applicable to the arbitration proceedings under Section 18(3) of the 2006 Act. Thus, it was held that the provisions of Limitation Act, 1963 would apply to the arbitrations covered by Section 18(3) of the 2006 Act.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. In view of the common issues which arise for consideration, these appeals are heard together and disposed of by this common judgment.
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