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[Cites 3, Cited by 1]

Delhi High Court - Orders

Ms Grand Mumtaz Hotel And Resort Through ... vs Deputy Commissioner North East ... on 11 January, 2023

Author: Prathiba M. Singh

Bench: Prathiba M. Singh

                          $~2,7,17 to 19, 20,21,37,38,39,50,51,53,54 & 55
                          *       IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +            W.P.(C) 16588/2022 & CM APPLs.52144-45/2022
                                  MS GRAND MUMTAZ HOTEL AND RESORT THROUGH ITS
                                  MANAGING PARTNER MR WASIM MUSHTAQ ..... Petitioner
                                                  Through: Mr. Shekhar Dasi, Advocate (M:
                                                             9871655327).
                                                  versus
                                  DEPUTY COMMISSIONER NORTH EAST GOVERNMENT OF
                                  NCT OF DELHI & ORS.                          ..... Respondents
                                                  Through: Ms. Mehak Nakra, ASC with Mr.
                                                             Karan Kapur, Advocate for R-1 (M:
                                                             9871144582).
                                                             Dr. Farrukh Khan, Mr. Anup Kr.
                                                             Nagar, Mr. Aman Rai and Ms.
                                                             Shagun Sarohi, Advocates for R-2 (M
                                                             9205029846).
                          7                       WITH
                          +            W.P.(C) 13758/2021 & CM APPL.43444/2021
                                  STERLITE POWER TRANSMISSION LIMITED ..... Petitioner
                                                  Through: Mr. Deepak Khurana and Mr.
                                                             Abhishek Bansal, Advocates (m:
                                                             9811231287).
                                                  versus
                                  M/S EPC SOLUTIONS LLP & ANR.                 ..... Respondents
                                                  Through: Mr. Dinesh Kr. Goswami, Sr.
                                                             Advocate with Mr. Rohit, Mr.
                                                             Prakash Kumar Sinha and Mr. Sushil
                                                             Kumar, Advocates for R-1.
                                                             Mr. Anuj Aggarwal, ASC with Ms.
                                                             Ayushi Bansal, Mr. Sanyam Suri and
                          17                      WITH
                          +            W.P.(C) 16891/2022 & CM APPL.53523/2022
                                  MUNICIPAL CORPOATION OF DELHI                ..... Petitioner
                                                  Through: Mr. Kunal Vajani, Mr. Kunal Mimani
                                                             and Mr. Kartikey Bhatt, Advocates
                                                             (M: 7042492840)
                                                  versus


Signature Not Verified
Digitally Signed
By:DEVANSHU JOSHI         W.P.(C) 16588/2022 & connected matters                        Page 1 of 8
Signing Date:13.01.2023
19:52:41
                                   RAM PRAKASH                                 ..... Respondent
                                                  Through: None.
                          18                      WITH
                          +            W.P.(C) 16894/2022 & CM APPL.53541/2022
                                  MUNICIPAL CORPORATION OF DELHI              ..... Petitioner
                                                  Through: Mr. Kunal Vajani, Mr. Kunal Mimani
                                                             and Mr. Kartikey Bhatt, Advocates
                                                             (M: 7042492840)
                                                  versus
                                  TRIWENI ENTERPRISES                         ..... Respondent
                                                  Through: None.
                          19                      AND
                          +            W.P.(C) 16895/2022 & CM APPL.53543/2022
                                  MUNICIPAL CORPORATION OF DELHI              ..... Petitioner
                                                  Through: Mr. Kunal Vajani, Mr. Kunal Mimani
                                                             and Mr. Kartikey Bhatt, Advocates
                                                             (M: 7042492840)
                                                  versus
                                  M/S TRIWENI ENTERPRICES                     ..... Respondent
                                                  Through: Ms. Arshya Singh, Advocate for R-2.
                          20                      WITH
                          +            W.P.(C) 16942/2022 & CM APPL.53675/2022
                                  NBCC (INDIA) LTD.                           ..... Petitioner
                                                  Through: Mr. Kartik Nagarkatti and Ms.
                                                             Prakriti Joshi, Advocates (M:
                                                             9873368749).
                                                  versus
                                  MICRO AND SMALL ENTERPRISES
                                  FACILITATION COUNCIL (SOUTH-EAST),
                                  GOVERNMENT OF NCT OF DELHI & ANR. ..... Respondents
                                                  Through: Mr. Avishkar Singhvi, Mr. Naved
                                                             Ahmed and Mr. Vivek Kumar,
                                                             Advocates (M: 9654847982).
                                                             Ms. Krishna Parkhani, Advocate for
                                                             R-2 (M: 7709872128).
                          21                      WITH
                          +            W.P.(C) 17725/2022 & CM APPL.56669/2022


Signature Not Verified
Digitally Signed
By:DEVANSHU JOSHI         W.P.(C) 16588/2022 & connected matters                         Page 2 of 8
Signing Date:13.01.2023
19:52:41
                                   RAJA BAHADUR INTERNATIONAL LTD.                ..... Petitioner
                                                  Through: Mr. Shubhas Takia, Advocate.
                                                  versus
                                  MICRO SMALL ENTERPRISES FACILITATION
                                  COUNCIL AND ORS                        ..... Respondents
                                                  Through: Mr. Ashish Verma, Advocate for R-3
                                                             (M: 9717944394).
                          37                      WITH
                          +            W.P.(C) 16567/2022 & CM APPLs.52091-92/2022
                                  JKS INFRASTRUCTURE PRIVATE LIMITED ..... Petitioner
                                                  Through: Mr. Dheeraj Sharma and Mr. Bhanu
                                                             Gupta, Advocates (M: 9560434606).
                                                  versus
                                  MSME FACILITATION COUNCIL AND ORS ..... Respondents
                                                  Through: None.
                          38                      WITH
                          +                       W.P.(C) 16702/2022
                                  M/S ASN ENGINEERS AND ERECTORS                 ..... Petitioner
                                                  Through: None.
                                                  versus
                                  UNION OF INDIA & ORS.                          ..... Respondents
                                                  Through: Mr. Ravi Prakash CGSC with Mr.
                                                             Amit Acharya, GP, Mr. Farman Ali
                                                             and Mr. Usha, Advocates for UOI
                                                             (M: 8744956276).
                          39                      WITH
                          +                       W.P.(C) 16720/2022
                                  JENENDRA MEDICOS PRIVATE LIMITED               ..... Petitioner
                                                  Through: Mr. Pramod Bhardwaj, Advocate.
                                                  versus
                                  UNION OF INDIA & ORS.                          ..... Respondents
                                                  Through: Mr. Ajay Digpaul, CGSC with Ms.
                                                             Swati and Mr. Kamal Digpaul,
                                                             Advocates for UOI (M: 9811157265).
                                                             Mr. Avishkar Singhvi, Mr. Naved
                                                             Ahmed and Mr. Vivek Kumar,
                                                             Advocates (M: 9654847982).
                          50                      WITH


Signature Not Verified
Digitally Signed
By:DEVANSHU JOSHI         W.P.(C) 16588/2022 & connected matters                          Page 3 of 8
Signing Date:13.01.2023
19:52:41
                           +            W.P.(C) 276/2023 & CM APPL.1107/2023
                                  MUNICIPAL CORPORATION OF DELHI             ..... Petitioner
                                                  Through: Mr. Kunal Vajani, Mr. Kunal Mimani
                                                            and Mr. Kartikey Bhatt, Advocates
                                                            (M: 7042492840)
                                                  versus
                                  M/S NATRAJ CONSTRUCTION CO.                ..... Respondent
                                                  Through: None.
                          51                      WITH
                          +            W.P.(C) 277/2023 & CM APPL.1108/2023
                                  MUNICIPAL CORPORATION OF DELHI             ..... Petitioner
                                                  Through: Mr. Kunal Vajani, Mr. Kunal Mimani
                                                            and Mr. Kartikey Bhatt, Advocates
                                                            (M: 7042492840)
                                                  versus
                                  M/S RAM PRAKASH                            ..... Respondent
                                                  Through: None.
                          53                      WITH
                          +            W.P.(C) 294/2023 & CM APPLs.1166-67/2023
                                  MUNICIPAL CORPORATION OF DELHI             ..... Petitioner
                                                  Through: Mr. Kunal Vajani, Mr. Kunal Mimani
                                                            and Mr. Kartikey Bhatt, Advocates
                                                            (M: 7042492840)
                                                  versus
                                  M/S RAM PRAKASH                            ..... Respondent
                                                  Through: None.
                          54                      WITH
                          +            W.P.(C) 300/2023 & CM APPLs.1184-85/2023
                                  SATYA NARAYAN SHARMA                       ..... Petitioner
                                                  Through: None.
                                                  versus
                                  VARISCON ENGINEERING SERVICES PVT. LTD...... Respondent
                                                  Through: Mr. Kailash Chandra, Advocate (M:
                                                            9810675135).
                          55                      WITH
                          +            W.P.(C) 302/2023 & CM APPLs.1188-89/2023
                                  MUNICIPAL CORPORATION OF DELHI             ..... Petitioner
                                                  Through: Mr. Kunal Vajani, Mr. Kunal Mimani


Signature Not Verified
Digitally Signed
By:DEVANSHU JOSHI         W.P.(C) 16588/2022 & connected matters                     Page 4 of 8
Signing Date:13.01.2023
19:52:41
                                                                      and Mr. Kartikey Bhatt, Advocates
                                                                     (M: 7042492840)
                                                      versus
                                   SH. CHHATER PAL                                 ..... Respondent
                                                      Through: None.
                                   CORAM:
                                   JUSTICE PRATHIBA M. SINGH
                                               ORDER

% 11.01.2023

1. This hearing has been done through hybrid mode.

2. All these petitions raise important issues arising out of the Micro Small and Medium Enterprises Development Act, 2006 (hereinafter 'MSME Act').

3. The ld. Counsel for the Micro & Small Enterprises Facilitation Council shall obtain data relating to the number of references received by the Council since its establishment, the number of matters where conciliation has been successful, and the number of matters wherein disputes have been referred to arbitration. The same shall be filed in the form a chart within one week.

4. All these matters shall be treated as part heard.

5. The Registry to list these matters on top of board, under the category of MSME matters.

W.P.(C) 16588/2022 & CM APPLs.52144-45/2022 W.P.(C) 13758/2021 & CM APPL.43444/2021

6. Submissions heard.

7. List on 16th March, 2023.

W.P.(C) 16942/2022 & CM APPL.53675/2022

8. The first issue raised in this petition relate to the fact that the supplier was not registered under the MSME Act when the contract between the Signature Not Verified Digitally Signed By:DEVANSHU JOSHI W.P.(C) 16588/2022 & connected matters Page 5 of 8 Signing Date:13.01.2023 19:52:41 parties was entered and services were provided. Further, the second issue is that the MSME Act would not apply as the same would apply only in respect of works contracts. The Respondent disputes this position.

9. Respondents are permitted to file counter affidavit/ written submissions on the legal issues raised at least one week before the next date of hearing.

10. Parties shall seek an adjournment before the ld. Arbitrator.

11. List for hearing on 16th March, 2023.

W.P.(C) 17725/2022 & CM APPL.56669/2022

12. List on 16th March, 2023 along with other MSME matters.

13. Interim order to continue till the next date of hearing. W.P.(C) 16567/2022 & CM APPLs.52091-92/2022

14. The issues raised in this petition are being considered in a batch of matters. Accordingly, list this matter along with other MSME matters.

15. It is clarified that no arbitral tribunal shall be constituted till the next date of hearing.

16. List on 16th March, 2023 W.P.(C) 16702/2022

17. Written submissions/counter affidavit on the legal issues raised may be filed by both the parties be filed, at least one week before the next date of hearing.

18. List on 16th March, 2023 along with all other MSME matters.

19. Interim order to continue till the next date of hearing. W.P.(C) 16720/2022

20. According to ld. Counsel appearing for the MSEFC, as per the order dated 3rd November, 2022 passed by this Court in W.P.(C) 13653/2022 Signature Not Verified Digitally Signed By:DEVANSHU JOSHI W.P.(C) 16588/2022 & connected matters Page 6 of 8 Signing Date:13.01.2023 19:52:41 titled M/s STUP Consultants Pvt. Ltd. v. MSEFC & Ors. the question as to whether a final settlement has been arrived at or not would be an issue which the arbitral tribunal would have to decide.

21. It is noticed that the Process Fee is not filed and the Respondents have not been served.

22. Issue fresh notice. Registry to also give intimation to all the Respondents on the email addresses mentioned in the memo of parties.

23. The interim order passed on 6th December, 2022 shall continue. Parties to file their counter affidavits/ written submissions on the legal issues raised by the next date of hearing.

24. List before the Registrar on 6th February, 2023.

25. List on 16th March, 2023.

W.P.(C) 300/2023 & CM APPLs.1184-85/2023

26. The issue raised in this petition is that works contracts are not amenable to the jurisdiction of the MSEFC.

27. Ld. counsel for the Petitioner relies upon the recent judgment of the Andhra Pradesh High Court dated 26th April, 2022 passed in WP Nos. 27670/ 2022 titled Rashtriya Ispat Nigam Ltd. v. Union of India. These very issues are also being considered by this Court in various other MSME matters.

28. Issue notice.

29. Mr. Kailash Chandra, ld. Counsel appearing for the Respondent submits that the Petitioner has not taken any objection before the MSEFC as to the maintainability of the claims and accordingly cannot claim such an objection today.

30. It is made clear that the arbitration proceedings shall continue and Signature Not Verified Digitally Signed By:DEVANSHU JOSHI W.P.(C) 16588/2022 & connected matters Page 7 of 8 Signing Date:13.01.2023 19:52:41 shall be subject to the outcome of this writ petition.

31. List on 16th March, 2023.

W.P.(C) 16891/2022 & CM APPL.53523/2022 W.P.(C) 16894/2022 & CM APPL.53541/2022 W.P.(C) 16895/2022 & CM APPL.53543/2022 W.P.(C) 276/2023 & CM APPL.1107/2023 W.P.(C) 277/2023 & CM APPL.1108/2023 W.P.(C) 294/2023 & CM APPLs.1166-67/2023 W.P.(C) 302/2023 & CM APPLs.1188-89/2023

32. None appears for the suppliers.

33. These petitions are connected with similar matters raising objections against the reference made by MSEFC.

34. Let notice be served of these petitions upon the suppliers by ld. Counsel for the Petitioner. If the said suppliers wish to file their reply, they are free to do so within two weeks.

35. In the meantime, in W.P.(C) 276/2023, W.P.(C) 277/2023, W.P.(C) 294/2023 and W.P.(C) 302/2023 arbitral tribunal shall not be constituted by the DIAC.

36. List on 16th March, 2023 along with other MSME matters.

37. Dasti.

PRATHIBA M. SINGH, J.

JANUARY 11, 2023 MR/kt Signature Not Verified Digitally Signed By:DEVANSHU JOSHI W.P.(C) 16588/2022 & connected matters Page 8 of 8 Signing Date:13.01.2023 19:52:41