Telangana HC: Conciliation Mandatory Before Arbitration in MSME Disputes

ENA MSME 2024-12-23 16:48:47 Telangana, Dec 23 (KNN) A two-judge panel of the Telangana High Court ruled that the Andhra Pradesh State Micro and Small Enterprises Facilitation Council must adhere to Section 18 of the Micro, Small, Medium Enterprises Development Act, 2006. This section mandates conciliation before arbitration in disputes referred to the MSME council. The judgment arose from an appeal by Deccan Power Products Pvt Ltd against the Hyderabad Metropolitan Water Supply & Sewerage Board (HMWS&SB), which alleged non-compliance with contractual obligations regarding water meter maintenance. Senior counsel for the appellant argued that non-compliance with Section 18(2) should not invalidate the award, which was passed after a hearing. However, Justices K. Sam Koshy and N. Tukaramji rejected the appeal, declaring the award a nullity due to non-compliance. The court emphasised the need for expeditious resolution within six months of party appearances before the council. Justice Moushumi Bhattacharya ordered state authorities to resolve Mahalaxmi Associates' revision petition challenging an Rs 8.3 crore penalty for alleged excess mining. The petitioner denied liability, claiming deductions from bills and no activity beyond the lease area. The court directed the petitioner to deposit Rs 20 lakh by December 27, allowing interim issuance of transit permits, pending the final revision decision by February 5, 2025. Justice T. Vinod Kumar heard a plea accusing the National Highways Authority of India (NHAI) of illegally demolishing a compound wall in Timmapur village, Kothur mandal. Petitioners alleged that NHAI bypassed mandatory procedures under the National Highways Act, 1956, and the Right to Fair Compensation Act, 2013, demolishing the wall at 2 am without surveys or fair compensation. The court directed the state to respond to these allegations, stressing adherence to statutory procedures. These rulings underscore the Telangana High Courts insistence on procedural compliance and timely dispute resolution in diverse legal matters. (KNN Bureau) 40360 https://knnindia.co.in/news/newsdetails/msme/telangana-hc-conciliation-mandatory-before-arbitration-in-msme-disputes 2024-12-23 16:48:47 knnindia.co.in Telangana HC: Conciliation Mandatory Before Arbitration in MSME Disputes