STATE OF U.P. Vs. JINDAL CONCRETE UDHYOG

JUDGEMENT

(1.) The claimant-respondent M/s Jindal Concrete Udhyog had supplied pipe etc. to the provincial division of Public Works Department, Mathura. A reference under Sec. 18 of Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter called as "Act of 2006") was moved by the claimant-respondent claiming a sum of Rs.2,78,480.00 as principal amount and Rs.3,58,096.00 as interest till date of filing of claim petition, totalling Rs.6,36,576.63, and further claimed interest at the rate of 18% on the amount from the date of filing of claim petition before U.P. State Micro and Small Enterprises Facilitation Council, Kanpur, which was registered as Claim Petition No.28 of 2008, till date of actual recovery.

(2.) After contest from the State side, final award was made on 3/8/2011 making a final award of Rs.2,78,480.00 as principal and Rs.7,47,795.86 as interest upto 14/12/2010 totalling Rs.10,26,275.86 in favour of the claimant.

(3.) The State filed application under Sec. 34(1)(3) of Arbitration and Conciliation Act, 1996 (hereinafter called as "Act of 1996") challenging the award before the District Judge, Mathura. An application under Sec. 9 read with Sec. 34(4) of Act of 1996 was also filed by the State on 15/9/2011. The claimant filed objection on 18/10/2011 objecting that 75% of the awarded amount was not deposited, hence, proceedings were not maintainable in view of Sec. 19 of the Act of 2006. On 8/11/2012, an application was moved by the State seeking further time for making deposit. The said application was rejected on 8/11/2012 on the ground that earlier, on 3/10/2012, time had already been granted to the State to comply the mandatory provisions of Sec. 19 of the Act of 2006 but it failed to do so and thus, the application seeking extension of time as well as objections under Sec. 34 were rejected.