SGM PACKAGING INDUSTRIES Vs. GOYAL PLYWOOD LLP

JUDGEMENT

(1.) This petition has been filed under Sec. 14 of the Arbitration and Conciliation Act (for short "Arbitration Act") read with Sec. 151 CPC seeking termination of the mandate of the Sole Arbitrator.

(2.) It is submitted that the petitioner is a proprietorship firm engaged in manufacturing of corrugated boxes, packaging material and other material which is used in logistic industry for safe transportation of goods. Respondent is stated to be a supplier of plywood and other wooden material used in the manufacturing of corrugated boxes and other packaging material by the petitioner. Respondent claimed an outstanding amount qua the petitioner in respect of goods supplied by it to the petitioner in the year 2016. Claim was filed by the respondent before the Haryana Micro and Small Enterprises Facilitation Council (for short "HMSEFC") claiming an amount of Rs.14,01,505.00.

(3.) It is contended that the matter was referred for arbitration without any valid order being passed on conciliation proceedings under the Micro, Small and Medium Enterprises Development Act, 2006 (for short "MSMED Act") Petitioner is stated to have received notice dtd. 8/6/2020 from the office of Sh. Satish Ahlawat, the Sole Arbitrator, asking the parties to appear before the Arbitrator on 20/6/2020 as he had been appointed Arbitrator by the HMSEFC. It is stated that the petitioner filed an application under Sec. 12 of the Arbitration Act seeking valid disclosure from the learned Arbitrator, copy of which is attached as Annexure P-2 and a specific objection was raised in the said application that there exists no clause for arbitration, therefore HMSEFC could not have referred the matter to the Arbitrator. Moreover, declaration in terms of Sec. 12 of the Arbitration Act, should be made by the Arbitrator. Said application was dismissed by the learned Arbitrator on 20/6/2020, Annexure P-3.