BESCO LIMITED Vs. HINDCON CHEMICALS PVT. LTD.

JUDGEMENT

(1.) The present appeal under Sec. 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the 1996 Act") has been preferred by the respondent in an arbitral proceeding, against a judgment passed under Sec. 34 of the 1996 Act, thereby affirming the award passed by the West Bengal State Micro and Small Enterprises Facilitation Council (in brief, "the Council").

(2.) By the impugned award, the respondent (present appellant) has been directed to pay an amount of Rs.6,88,852.00, together with interest at three times the bank rate notified by the RBI with effect from the date of expiry of the period of 45 days from the day of acceptance or the day of deemed acceptance of the work as admissible under the provisions of Ss. 15 and 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (for short, "the 2006 Act").

(3.) Learned counsel for the appellant argues that the Council acted contrary to the scheme of Sec. 18 of the 2006 Act in terminating the conciliation process, taking up the matter for arbitration, and passing the award by the self-same order dated September 21, 2011. It is contended that in terms of sub-sec. (3) of Sec. 18 of the 2006 Act, where the conciliation initiated under sub-sec. (2) is not successful and stands terminated, the Council has to take up the dispute for arbitration or refer it to any institution or centre, whereupon the provisions of the 1996 Act shall apply.