- (1.) The third respondent filed a claim petition before the Uttar Pradesh State Micro and Small Enterprises Facilitation Council on 19 November 2012. The grievance of the third respondent is that it supplied goods amounting to Rs. 6.87 lacs during the period from 27 September 2010 to 23 April 2012 to the Petitioner in spite of which payment has not been made. In pursuance of the aforesaid claim petition, a notice was issued by the Council, which is impleaded as the second respondent, to the petitioner on 3 December 2012. On 7 January 2013, the petitioner filed an objection under Section 8 of the Arbitration and Conciliation Act, 1996 stating that there is an arbitration agreement between the parties and submitted that the dispute be referred to arbitration in terms of the arbitration agreement. On 27 May 2013, the petitioner was asked to appear before the Member of the Facilitation Council at Lucknow for conciliation. Thereafter, further proceedings have taken place and on 30 December 2013, an order has been passed observing that the conciliation has not been successful. On 17 January 2014, a notice was issued to the petitioner to file its reply failing which it has been stated that action would be taken in terms of the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.
(2.) The petitioner has filed this proceeding seeking the intervention of this Court and prays for a certiorari quashing all the proceedings before the Uttar Pradesh State Micro and Small Enterprises Facilitation Council and a direction to the Council to decide the objection filed under Section 8 of the Arbitration and Conciliation Act, 1996.
(3.) The petitioner has relied upon the arbitration agreement which is contained in the contract between the parties, which is in the following terms: "23. ARBITRATION : In all cases of disputes emanating from and in reference to this Purchase Order the matter shall be referred to the arbitration of the sole arbitration of the Executive Director/ GM of BHEL, Bhopal or any other person (including an employee of BHEL, even though he had to deal with the matter relating to this P.O. in any manner) nominated by the said Executive Director/ GM to act as sole arbitrator. The arbitration shall be under 'THE ARBITRATION AND CONCILIATION ACT OF 1996' and the rules there under. The arbitrator may from time to time with the consent of the parties enlarge the time for making and publishing the award.";