NORTHERN TRANSFORMERS Vs. UT OF J&K

JUDGEMENT

(1.) The petitioner claims to be an enterprise within the meaning of Sec. 2(e) of the Micro, Small and Medium Enterprises Development Act, 2006 ["the Act"]. The petitioner submits that he supplied certain goods to respondent No.5 vide three different invoices dtd. 23/3/2019, 30/3/2019 and 30/3/2019. On completion of supplies to the satisfaction of respondent No.5, the petitioner submitted his bills for release of total payment of Rs.90,73,183.00. It is claimed that the bills submitted by the petitioner were verified, certified and approved by respondent No.5. Since the payment due to the petitioner was not released within the statutory period of 45 days as stipulated under Sec. 15 of the Act, as such, the petitioner approached the Micro and Small Enterprises Facilitation Council [MSEFC], Kashmir, for reconciliation in the matter. Couple of notices were issued by MSEFC, Kashmir, to respondent No.5 calling upon the later to make the payment of amount due to the petitioner. The grievance of the petitioner is that thereafter the Council has not proceeded in the matter but the amount remains unpaid.

(2.) Referring to Ss. 15 to 18 of the Act, it is submitted that the statutory mechanism provided under the Act needs to be adhered to by the authorities in letter and spirit. This petition is, therefore, for seeking a direction to respondent No.5 to pay the admitted amount due to the petitioner. However, during the course of argument, Mr. Azhar-ul-Amin, learned counsel appearing for the petitioner restricted his relief only to the extent of directing the adherence to the dispute resolution mechanism provided under Sec. 18 of the Act.

(3.) Heard learned counsel for the petitioner and perused the material on record.