HARYANA POWER GENERATION CORPORATION LTD. Vs. HARYANA STATE MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL AND ANOTHER

JUDGEMENT

(1.) Instant writ petition is directed against the order dated 21.7.2015 (Annexure P-7), passed by the Haryana State Micro and Small Enterprises Facilitation Council (for short 'the Council'), whereby application submitted by the petitioner for rejecting the claim petition of 2nd respondent, was declined and the matter was referred to the empanelled arbitrator, notified by the Government under Rule 16 of the Haryana State Micro and Small Enterprises Facilitation Council Rules, 2007 (for short 'the Rules of 2007'), read with Sec. 18(3) of Chapter V of the Micro, Small and Medium Enterprises Development Act, 2006 (for short 'the Act of 2006'), for deciding the dispute between the petitioner-buyer and 2nd respondent-supplier.

(2.) Notice of motion was issued and in compliance thereof, reply on behalf of the only contesting respondent No.2, was filed.

(3.) Learned counsel for the petitioner submits that since there was an arbitration clause in the agreement (Annexure P-2) between the parties, the Council- 1st respondent would not have any jurisdiction to entertain the claim application of 2nd respondent, either for its conciliation or for referring the matter to the empanelled arbitrator, notified by the Government under the Rules of 2007. He further submits that 2nd respondent was not entitled to invoke the provisions contained in Sec. 18 of the Act of 2006. In support of his contentions, learned counsel for the petitioner places reliance on a Division Bench judgment of Bombay High Court in M/s. Steel Authority of India Limited and another Vs. Micro Small Enterprise Facilitation Council, AIR 2012 Bombay 178. He would next contend that since the impugned order (Annexure P-7) passed by the first respondent was an order without jurisdiction, the same is liable to be set aside. He prays for quashing the impugned order (Annexure P-7), by allowing the present writ petition.