LAWS(MPH)-2011-1-17

ORIENT PAPER MILL LTD Vs. BANG LIME INDUSTRIES

Decided On January 17, 2011
ORIENT PAPER MILL LTD Appellant
V/S
BANG LIME INDUSTRIES Respondents

JUDGEMENT

(1.) THIS petition, under Article 227 of the Constitution, is directed against the order dated 29-7-2010, Annexure P6, passed in Arbitration Case No. 22/2009 by the Sixth Additional District Judge, Bhopal, whereby he has dismissed the petitioner's application for exemption from payment of 75% of the amount awarded.

(2.) THE respondent filed an application against the petitioner for recovery of Rs. 16,26,678/- as interest before the Madhya Pradesh Micro, Small Enterprises Felicitation Council, Bhopal. THE amount claimed was in respect of interest for the delay in payment of the lime supplied to the petitioner. THE Felicitation Council, after hearing the parties, passed an award dated 28-11-2008 directing the petitioner to pay Rs. 59.08 lac to the respondent. THE petitioner has challenged the award before the Vlth Additional District Judge, Bhopal, by filing an application under section 34 of the Arbitration And Conciliation Act, 1996. THE petitioner also filed an application for exemption from payment of 75% of the amount awarded as provided under section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 (in short, "the Act"). This application was objected by the respondent. THE Court below, after hearing both the parties and relying upon the Division Bench decision of this Court in M/s R. S. Avtar Singh vs. M/s Vindyachal Air Products, 2009(3) MPU 392 = 2009(5) M.P.H.T. 380 by the impugned order has dismissed the application.

(3.) SECTION 19 of the Act reads as under :-