- (1.) This arbitration petition is for setting aside award.
(2.) Mr. Chowdhury, learned advocate appears on behalf of petitioner and submits, impugned award was passed in a reference originating from arbitration agreement between parties. His client had applied under section 16 of Arbitration and Conciliation Act , 1996 challenging jurisdiction of the Tribunal, in once again going into purported disputes raised by award holder. Those stood decided and award made in arbitration compelled under Micro, Small and Medium Enterprises Development Act , 2006(MSME Act). He submits, purported claim of award holder was essentially for damages. This could have been put forward by way of counter-claim in compelled arbitration. Omission of award holder to have so done and thereupon issues on his client's claim decided in an adjudication between parties, binds award holder, barring it from agitating the same claim, purportedly under arbitration agreement between parties through reference pursuant thereto.
(3.) He places section 18 from MSME Act. With special emphasis on sub-section (3) he submits, when conciliation is unsuccessful, there will be arbitration on the disputes and provisions of 1996 Act shall then apply to the disputes as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section (1) of section 7 of that Act. This happened in the compelled reference. He refers to inserted by amendment in year 2016 sub-section (2A) in section 23 of 1996 Act, which provides as follows:- "(2A) The respondent, in support of his case, may also submit a counter-claim or plead a set-off, which shall be adjudicated upon by the arbitral tribunal, if such counter-claim or set-off falls within the scope of the arbitration agreement." ;