HC stays award passed by Chairperson, MSEFC SAS Nagar Punjab
30/11/2024
SRINAGAR, Nov 29: The High Court of J&K and Ladakh at Srinagar comprising of Justice Wasim Sadiq Nargal has issued notice in a petition and stayed the impugned award dated 1st June, 2023 passed by Chairperson, District Level Micro & SmallEnterprises Facilitation Council (MSEFC) SAS Nagar Punjab in case titled "M/S JTL Infra Limited v/s Executive Engineer, PHE M & P Division, Srinagar, Jammu and Kashmir.
Justice Nargal passed this order in a petition filed by the UT of Jammu and Kashmir (P.H.E.) through: Mr. A.R. Malik, Sr. AAG with Mr. Mohammad Younus, Advocate Vs.M/S JTL INFRA LIMITED and others.
The petitioner Govt of J&Khad filed this writ petition wherein it had called in question the award dated 1st June, 2023 passed by Chairperson, District Level Micro & Small Enterprises Facilitation Council (MSEFC) SAS Nagar Punjab in case titled "M/S JTL Infra Limited v/s Executive Engineer PHE M & P Division Srinagar, whereby the respondents were held to be entitled for the payment of Rs 2,75,65,355.00/- (Rs. Two crore seventy five lakh sixty five thousand three hundred and fifty five only) as principal along with interest as delayed payment upto 31.05.2023 and the reference of the respondents has been accepted not only for the pending principal amount but also with interest there upon as per provisions of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, Act. 2006 and an award of pending principal amount of Rs 2,75.65.355.00/- (Rs. Two crore seventy five lakh sixty fivethousand three hundred and fifty five only) alongwith interest of Rs 8,77,32,279.00/- (Rs. Eight crore seventy seven lakh thirty two thousand two hundred and seventy nine only) upto 20.04.2023 (Total amounting to Rs 11,52,97,635.00/- (eleven crore fifty two lakh ninety seven thousand six hundred and thirty five only) as per Calculation Sheet attached, was passed in favour of the respondents against the petitioner.
"Relying upon the aforesaid statutory provisions, learned counsel submits that the award passed by the said council has violated the aforesaid statutory provision of the Act as the respondents does not fall within the definition of "Micro, Small and Medium Enterprises" as defined under the aforesaid statutory provision." observed the High Court.
The Court observed "It is the further case of the petitioner, that it is incumbent on part of the council before passing the impugned award to have recorded a finding whether, the respondents falls within the ambit of Micro, Small and Medium Enterprises but admittedly, the council has not called for any record nor has recorded any finding as to whether the respondents fall within the definition of Micro, Small and Medium Enterprises. On the other hand, the said council proceeded to pass the aforesaid award and that too, ex-parte without providing an opportunity of being heard to the petitioner herein (respondents therein). The petitioner with a view to substantiate their claim has placed on record the annual turnover by way of Income Tax Return. A perusal of the same reveals that the annual turn over details of the respondents for the year 2015-16, 2016-17, 2017-18, 2018-19 is Rs. 94,86,54, 512; Rs. 112,74,67,380; Rs.
169,73,85, 606; Rs. 321,53,03,094 respectively." the Court observed.
The Court observed that prima facie a case for indulgence and interim relief is made out at this stage and therefore issued notice to the respondents, returnable within a period of four weeks and in the meantime, subject to objections from other side and till nextdate of hearing before the Bench, impugned award dated 1st June, 2023 passed by Chairperson, District Level Micro & Small Enterprises Facilitation Council (MSEFC) SAS Nagar Punjab in case titled "M/S JTL Infra Limited v/s Executive Engineer, PHE M & P Division, Srinagar, Jammu and Kashmir, was directed to remain stayed.
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