DIRECTOR HEALTH SERVICES & FAMILY WELFARE Vs. U.P. STATE MICRO AND SMALL ENTERPRISES E.F. COUNCIL AND ORS.

JUDGEMENT

(1.) Heard learned counsel for the parties.

(2.) The petition is being decided without calling for counter affidavit, on the request of the learned counsel for the parties, as per the Rules of the Court.

(3.) The Director Health Services & Family Welfare, Punjab, applicant herein, floated tender inviting offers for supply of Diesel Generators, the second respondent, a Small Scale Industrial Unit, registered with the Directorate of Industries, U.P., engaged in the business of manufacturing Diesel Engine and Generator sets applied pursuant to the tender and was successful, consequently, a contract was entered between the applicant and the second respondent, pursuant thereof, the second respondent supplied Generators to the applicant in 2008 for which 90% payment was released but remaining 10% was with-held. According to the applicant, the supplied goods and their performance was not satisfactory, the second respondent upon non-payment sought a reference before the U.P. State Micro and Small Enterprises Facilitation Council, Kanpur(Council) to initiate proceedings under Section 18 of the Micro, Small Medium Enterprises Development Act, 2006.(Micro, Small Enterprises Act) The Council, consequently initiated conciliation proceedings which came up in the claim petition No. 3 of 2010, however, upon failure due to the non appearance of the applicant, Council initiated Arbitration in term of Section 18(3) of Micro, Small Enterprises Act.