ONGC PETRO ADDITIONS LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Challenge in this petition is to the order dated 19.02.2020 passed by the Micro and Small Enterprises Facilitation Council, Gandhinagar, Gujarat (hereinafter referred to as "MSEFC") whereby, it terminated the conciliation proceedings conducted under Section 18(2) of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as "MSME Act") and directed the parties to start the arbitration proceedings under Section 18(3) of the MSME Act before the MSEFC.

(2.) The respondent No.3 - M/s Rachna Infrastructure Ltd. filed reference under Section 18(1) of the MSME Act before the MSEFC claiming that there exists dispute with regard to delayed payment and interest thereon, against respondent No.4 - M/s. Fernas Construction India Pvt Limited and petitioner - M/s. ONGC Petro additions Limited. After putting in tireless efforts by the MSEFC since it did not yield any outcome, MSEFC terminated conciliation proceedings and directed the parties to start the arbitration before it.

(3.) The petitioner - M/s ONGC Petro additions Limited (hereinafter referred to as "OPaL") is a Company incorporated under the provisions of Companies Act, 1956 and is a joint venture company promoted by M/s Oil and Natural Gas Corporation Limited and co-promoted by M/s GAIL (India) Limited and M/s Gujarat State Petroleum Corporation Limited. It is engaged in the business of manufacturing of Petrochemicals and other allied products.