India Glycols Limited And Another Vs Micro And Small Enterprises Facilitation Council (Supreme Court of India)
The Supreme Court granted leave and considered an appeal arising from proceedings initiated by the second respondent, M/s S R Technologies (Unit II), before the Micro and Small Enterprises Facilitation Council, Medchal–Malkajgiri under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The Facilitation Council, by its award dated 28.10.2021, allowed the claim for the principal amount of Rs. 40,29,862 and awarded interest with monthly rests at three times the prevailing bank rate under Section 16 of the MSMED Act from the appointed day until final payment.
The appellant challenged the award by filing a writ petition under Articles 226 and 227 of the Constitution before the High Court of Telangana. By judgment dated 14.09.2022, the learned Single Judge allowed the writ petition and set aside the award on the ground that the claim was barred by limitation. In appeal, the Division Bench, by judgment dated 21.03.2023, reversed the decision of the Single Judge and held that the writ petition was not maintainable in view of the specific statutory remedies available under the MSMED Act and the Arbitration and Conciliation Act, 1996. The Division Bench observed that the appellant ought to have challenged the award by invoking Section 34 of the Arbitration and Conciliation Act, 1996 and that the writ petition should not have been entertained. Although it held the writ petition to be not maintainable, the Division Bench also considered the issue of limitation and concluded, following Gujarat State Civil Supplies Corporation Limited vs Mahakali Foods Private Limited (Unit 2) and Another, that the claim was time-barred.
