Manoj Misra, J. - (1.) The present petition has been filed against an award passed by the U.P. Micro and Small Enterprises Facilitation Council, Directorate of Industries, U.P., Kanpur (in short the Facilitation Council) in its meeting held on 16.02.2016, which was drafted and signed on 11.04.2016, on Claim Petition No.5 of 2013 filed the respondent (M/s Atul Pumps Private Limited, Agra), under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (in short the Act, 2006). The petitioners have also prayed for a direction to restrain the respondent from proceeding further with Execution Case No.1824 of 2016, arising out of the above award, pending in the court of Additional District and Sessions Judge, Chandigarh.
(2.) A brief narration of facts would be helpful to understand the controversy. The respondent had supplied certain goods (PVC Pipes, etc) to the petitioners under supply order dated 16.02.2009. On 06.11.2009, a bill of Rs.1,17,66,766/- was raised by the respondent for the supplies made to the petitioners. The petitioners promptly paid Rs.25,00,000/- to the respondent against the aforesaid bill. But the balance was not paid on time. On delay in payment of the balance amount, the respondent served a legal notice dated 21.01.2011 upon the petitioners for payment of the balance amount of Rs.92,66,766/-. Upon failure to make payment by the petitioners, despite service of notice, the respondent filed Writ Petition No.11562 of 2011 in the High Court of Punjab and Haryana (in short PH High Court), which was disposed of by order dated 07.07.2011 with a direction to the respondent in the writ petition (the petitioners herein) to take an appropriate decision on the legal notice dated 21.02.2011 for settlement of the bill within a period of 12 weeks from the date of receipt of certified copy of the order. It was also observed in court's order that if the amount is found payable, the same be released without any further delay. When the order of PH High Court was not complied with, the respondent filed Contempt Petition No.2450 of 2011 before the PH High Court. In the contempt proceedings, reply/affidavit was filed by the contemnor - respondent appending order dated 11.11.2011 by which decision had been taken on the notice of the contempt petitioner (respondent herein). It was indicated in the said reply affidavit that the principal amount payable has been paid but the claim for interest was turned down. Upon filing of the said reply affidavit, the contempt notices were discharged by PH High Court, vide order dated 14.02.2012, however, liberty was given to the contempt-petitioner (respondent herein) to impugn the order rejecting the claim for interest before an appropriate forum. The respondent, thereafter, filed Claim Petition No.5 of 2013 before the Facilitation Council under Section 18 of the Act, 2006 by claiming that it was a supplier within the meaning of Section 2 (n) of the Act, 2006 located within the territorial jurisdiction of the Facilitation Council and had been provided delayed payment for the supplies made by it and, as such, was entitled to the interest payable under Section 16 read with Section 15 of the Act, 2006.
(3.) The Facilitation Council made an effort for conciliation but as the conciliation was unsuccessful, it was terminated and, thereafter, the Facilitation Council proceeded to take up the dispute as an arbitrator under sub-section (3) of Section 18 of the Act, 2006.;