- (1.) Heard learned counsel for the parties.
(2.) The award at Annexure -11 passed by the respondent no.2, Jharkhand Micro and Small Enterprises Facilitation Council communicated through memo no. 3342 dated 12.12.2013 is under challenge in the present writ petition by the petitioner. The award impugned has been passed under Section 18(3) of the Micro, Small and Medium Enterprises Development Act,2006 in case no. JHMSEFC No.01/2013 on a reference made by applicant ­ supplier / respondent no.3. The applicant / supplier is said to be a Small Enterprises Firm registered with District Industry Centre, Ranchi on whom order was placed on 1.10.2012 by the buyer / petitioner for supply of 2 lakhs kg of HTS wire valuing Rs.112.77 lakhs with payments to be made within 30 days from the date of delivery. Another purchase order for supply of specified description of HTS wire for a value of Rs. 107.73 lakhs was also placed on 29.11.2012 with payments to be made within 30 days from the date of delivery. Applicant claims to have supplied consignment amounting to Rs. 1,65,64,314/ - in accordance with the purchase order on various dates to the buyers against which part payment of Rs.25,86,752/ - were made on 22.12.2012.
(3.) Aggrieved with the delay in making payments, the applicant / supplier filed the reference on 4.2.2013 under Section 18(1) of the Act of 2006 before the Council for realization of outstanding dues of Rs. 1,39,77,562/ - towards principal and Rs. 2,60,997/ - towards interest up to 31.1.2013 supported by affidavit of the applicant and certified by a Chartered Accountant. On 12.2.2013 the reference was admitted by the Council and registered notices to the buyer / petitioner along with the claim petition of the applicant/ supplier were sent on 13.2.2013 directing him to appear on 5.3.2013 and file his objection / written statement, if any up till 28.2.2013. The Buyer / petitioner appeared in the proceeding on 5.3.2013 and preferred an application under Section 8 of the Arbitration & Conciliation Act, 1996, requesting the Council to stay the further proceeding in Case No. 1/2013 claiming that prayer is not maintainable under Section 18 of the Act of 2006. He also filed a Misc. Case No. 16/2013 (N) before the Additional District Judge, Barasat (West Bengal) under Section 9 of the Arbitration & Conciliation Act, 1996 which on contest, by the order and judgment dated 14.5.2013 was rejected. This order was also placed before the Council. Petitioner preferred an appeal before the Hon'ble Calcutta High Court in F.M.A. 1945 of 2013 along with an application vide C.A.N. No. 6439 of 2013 for staying of the proceedings pending before the Council. The Stay petition was disposed of without any order as to costs on 8.7.2013 with an observation that " we have made it free for the parties to make their respective contentions before the tribunal". The next date fixed for filing objection by the opposite parties / petitioner was 17.6.2013. A Junior Counsel appearing on behalf of the opposite party prayed for time on the ground that conducting lawyer has to appear. Time was allowed to the opposite parties by way of last chance to file written statement against the claim of the applicant by 19.8.2013, so that Council would hear the matter. The case was again taken up on 2.9.2013. However, on the said date also prayer of adjournment was made by the Junior Counsel for the Buyer / petitioner by way of adjournment petition stating that the opposite parties had invoked the arbitration clause pursuant to which arbitration proceedings are pending before the Sole Arbitrator, Kolkata. The said prayer of the petitioner/ buyer was rejected by the Council. It appears that on failure of the parties to arrive at a settlement through conciliation Under Section 18(2) of the Act of 2006, respondent - Council in exercise of power Under Section 18(4) of the Act of 2006 proceeded to decide the dispute between the parties. Thereafter, it dealt with the merit of the claim of the applicant and declared the Award under which the petitioner/ buyer has been directed to make payment of principal outstanding amount of Rs.1,39,77,562/ - up to 31.8.2013. It also directed that the Buyer/ petitioner shall pay interest of Rs. 26,61,381 from 10.11.2012 to 31.8.2013 on the principal outstanding @ 3 times of Bank Rate notified by R.B.I, compounded with monthly rests in terms of Section 16 of the Act of 2006. The interest will occur till the date final payment is made.;