Micro, small and medium enterprises development act 2006.

surajit samanta roy (Querist) 23 January 2023 This query is : Resolved
Award passed by the Director of Industries under MSEFC . Whether the award will be challenged in appeal before the High Court or willed challenged U/S 34 of Arbitration & Conciliation Act 1996. Please advise.

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This discussion clarifies the process for challenging awards passed by the Micro and Small Enterprises Facilitation Council (MSEFC) under the Micro, Small and Medium Enterprises Development Act, 2006. It explains that appeals against such awards can be made to the High Court, with specific provisions under Section 19 requiring a deposit of 75% of the award amount for non-suppliers. The process involves referencing disputes to the MSEFC, which can then conduct conciliation or arbitration, often referring to the Arbitration and Conciliation Act, 1996.

kavksatyanarayana (Expert) 24 January 2023
It will be challenged in High Court.

Dr J C Vashista (Expert) 25 January 2023
What do you mean from the term "MSEFC" used by you ?
Whether Director of Industries has passed the award in an arbitration case or some other proceeding ?

P. Venu (Expert) 25 January 2023
Yes, you have not posted the material facts.

Dr J C Vashista (Expert) 26 January 2023
It would be appropriate to correlate your facts with laws applicable on the subject, which are as Section 17 to 19 of the Micro and Small Enterprises Facilitation Council Act, 2016 which read as under:

17. Recovery of amount due.—For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the amount with interest thereon as provided under section 16.

18. Reference to Micro and Small Enterprises Facilitation Council.—(1) Notwithstanding anything contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council.
(2) On receipt of a reference under sub-section (1), the Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such an institution or centre, for conducting conciliation and the provisions of sections 65 to 81 of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to such a dispute as if the conciliation was initiated under Part III of that Act.
(3) Where the conciliation initiated under sub-section (2) is not successful and stands terminated without any settlement between the parties, the Council shall either itself take up the dispute for arbitration or refer it to any institution or centre providing alternate dispute resolution services for such arbitration and the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall then apply to the dispute as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section (1) of section 7 of that Act.
(4) Notwithstanding anything contained in any other law for the time being in force, the Micro and Small Enterprises Facilitation Council or the centre providing alternate dispute resolution services shall have jurisdiction to act as an Arbitrator or Conciliator under this section in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India.
(5) Every reference made under this section shall be decided within a period of ninety days from the date of making such a reference.
19. Application for setting aside decree, award or order.—No application for setting aside any
decree, award or other order made either by the Council itself or by any institution or centre providing alternate dispute resolution services to which a reference is made by the Council, shall be entertained by any court unless the appellant (not being a supplier) has deposited with it seventy-five per cent. of the amount in terms of the decree, award or, as the case may be, the other order in the manner directed by such court:
Provided that pending disposal of the application to set aside the decree, award or order, the court shall order that such percentage of the amount deposited shall be paid to the supplier, as it considers reasonable under the circumstances of the case, subject to such conditions as it deems necessary to impose.

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