PAPER & BOARD CONVERTORS Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard learned counsel for the parties.

(2.) The applicant is registered with the National Small Industries Corporation as supplier of paper products to the Government Departments. The applicant was awarded contracts during 2005, 2008 and 2009 for supply of paper products, however, upon supply, the applicant was not paid the amount. Aggrieved, the applicant approached the U.P. State Micro and Small Enterprises Facilitation Council, Kanpur under Section 18 of the Micro Small and Medium Enterprises Development Act, 2006 (Act 2006) by filing a claim petition which was registered as IFC No. 41 of 2011 (M/s Paper & Board Convertors Versus Union of India). The Council on 18 June 2015 rendered an award. Aggrieved, the respondent assailed the award by filing an application under Section 34 of the Arbitration and Conciliation Act, 1996 (Act 1996). On the application, report was submitted by the Munsrim that the respondent has not deposited 75% of the awarded sum as required under Section 19 of the Act 2006.

(3.) It appears that the respondent filed an objection to Munsrim report which was allowed by the impugned order dated 17 September 2015 relying upon a judgment of the Bombay High Court dated 5 February 2008 rendered in Maharashtra Small Scale Industry Development Corporation Ltd. Versus Snehadeep Structure Pvt. Ltd.