Madras High Court
M/S.Suraj Precision Engg. Works Pvt. ... vs M/S.S.S.S.Engineering Works on 4 August, 2025
Author: N. Sathish Kumar
Bench: N. Sathish Kumar
C.R.P.No.1548 & 1553 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 04.08.2025
CORAM :
THE HONOURABLE MR. JUSTICE N. SATHISH KUMAR
C.R.P.Nos.1548 & 1553 of 2025
and
C.M.P.Nos.8993 & 9003 of 2025
1.M/s.Suraj Precision Engg. Works Pvt. Ltd.,
Represented by its Chairman Mr.Sushil Haridass
No.26, B-7, SIDCO Industrial Estate,
Ambattur, Chennai – 600 098.
2.Suraj Sushil ... Petitioners
in C.R.P.Nos.1548 of 2025
1.M/s.Suraj Precision Engg. Works Pvt. Ltd.,
Represented by its Chairman Mr.Sushil Haridass
No.26, B-7, SIDCO Industrial Estate,
Ambattur, Chennai – 600 098.
2.Sushil Haridass ... Petitioners
in C.R.P.Nos.1553 of 2025
Vs.
M/s.S.S.S.Engineering Works,
Plot No.5, Gopal Reddy Estate,
Milk Colony Road, Kodungaiyur,
Chennai – 600 118. ... Respondent
in C.R.P.No.1548 of 2025
Page 1 of 9
https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/08/2025 04:17:36 pm )
C.R.P.No.1548 & 1553 of 2025
M/s.Sun Engineering Works,
Plot No.5, Gopal Reddy Estate,
Milk Colony Road, Kodungaiyur,
Chennai – 600 118. ... Respondent
in C.R.P.No.1553 of 2025
Prayer in C.R.P.No.1548 of 2025 : Civil Revision Petition filed under
Article 227 of the Constitution of India against the order dated 23.01.2025
made in E.A.No.1 of 2024 in E.P.No.4211 of 2023 on the file of the XXV
Assistant City Civil Court, Chennai.
Prayer in C.R.P.No.1553 of 2025 : Civil Revision Petition filed under
Article 227 of the Constitution of India against the order dated 23.01.2025
made in E.A.No.1 of 2024 in E.P.No.4209 of 2023 in MSEFC/CR/167/2020
on the file of the XXV Assistant City Civil Court, Chennai.
For Petitioners : Mr.P.Raja
in both petitions
For Respondents : Mr.M.Jaisingh
in both petitions
COMMON ORDER
Challenging the orders passed by the Execution Court dismissing the applications filed under Section 47 CPC questioning the Awards passed by Page 2 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/08/2025 04:17:36 pm ) C.R.P.No.1548 & 1553 of 2025 the Micro and Small Enterprises Facilitation Council, Chennai, Region, Tamil Nadu (“MSME Council” for brevity), the present revision petitions have been filed.
2.The respondent filed petitions before the MSME Council in MSEFC/CR/166/2020 and MSEFC/CR/167/2020 as against the 1st petitioner Company for recovery of money. The MSME Council, by Awards dated 24.12.2021, allowed the petitions and ordered recovery of money. Thereafter, execution has been levied based on the Awards dated 24.12.2021, in E.P.Nos.4211 of 2023 and 4209 of 2023. In the Execution Petitions, the Managing Director of the 1st petitioner Company has also been made as a party, whereas, originally he was not a party before the Council.
3.Be that as it may, the Managing Director (2nd petitioner herein) has taken out the present applications in E.A.Nos.1 of 2024 and 1 of 2024 under Section 47 CPC before the Execution Court on the ground that the Awards are not valid in the eye of law.
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4.However, the said applications have been dismissed by the Execution Court by orders dated 23.01.2025, however, granting liberty to the petitioner to raise all his objections by way of a counter in the main Execution Petitions. Challenging the orders passed by the Execution Court, the present revision petitions have been filed.
5.Learned counsel for the petitioners would submit that, despite the request made by the petitioner to refer the matter for arbitration, the matter has not been referred to arbitration as per Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act” for brevity). Whereas, the Award proceeded as if it has been passed in conciliation. It is his contention that any Award passed in conciliation is only based on agreement, not by way of adjudication. It is his grievance that the Council has passed the Award on the basis of certain documents filed by the respondent without referring the matter for arbitration. In that context, at the execution stage, objections have been taken out under Section 47 CPC.
6.I have perused the entire materials available on record. Page 4 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/08/2025 04:17:36 pm ) C.R.P.No.1548 & 1553 of 2025
7.As rightly pointed out by the learned counsel for the petitioner, once the matter is referred to MSME Council under Section 18 of the MSMED Act, on receipt of such reference under the said section, the Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such institution or centre, for conducting conciliation. The provisions under Sections 65 to 81 of the Arbitration and Conciliation Act, 1996, will normally apply. Further, if the conciliation does not fructify, then option is available to the MSME Council either to decide the dispute by itself by way of arbitration, or to refer matter to any institution or centre providing alternate dispute resolution services for such arbitration. Therefore, once the conciliation has failed, the only option available to the Council is to decide the dispute by way of arbitration. In such case, there must be a reference for arbitration and an opportunity should be given to the other side to file counter, adduce evidence, etc., and thereafter, the matter has to be adjudicated on merits based on oral and Page 5 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/08/2025 04:17:36 pm ) C.R.P.No.1548 & 1553 of 2025 documentary evidence.
8.However, in the case on hand, the Awards passed by the MSME Council indicates that, despite the request made by the petitioner to refer the matter for arbitration, the matter has not been referred for arbitration, either before itself or to any other institution. However, the Council has recorded as if they are deciding the issues in conciliation. The conciliation, in the view of this Court, is by way of settlement between the parties, not by way of adjudication. Therefore, this Court is of the view that very Awards passed by the Council are not in tune with Section 18 of the MSMED Act.
9.However, it is relevant to note that the 2nd petitioner (Managing Director of the 1st petitioner Company) was not a party before the MSME Council, however, he has also been made as a party in the execution proceedings. The 2nd petitioner has now filed the applications under Section 47 CPC. Normally, an application under Section 47 CPC can be filed only by the parties to the suit, not by a person who was not a party to Page 6 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/08/2025 04:17:36 pm ) C.R.P.No.1548 & 1553 of 2025 the suit. In such view of the matter, the applications filed by the Managing Director of the 1st petitioner Company, who was originally not a party to the proceedings before the Council, cannot be entertained. As the Execution Court has granted liberty to the petitioner to raise all his objections by filing counter in the main Execution Petition, the Execution Court, taking note of the legal issues involved in this case as to whether the Award itself is a nullity and whether such Award is enforceable or not, shall decide all those issues in the Execution Petition itself and pass orders on its own merits, as expeditiously as possible.
10.Accordingly, these Civil Revision Petitions are disposed of. No costs. Consequently, connected miscellaneous petitions are closed.
04.08.2025 mkn Internet : Yes Index : Yes / No Speaking order : Yes / No Neutral Citation : Yes / No To
1.The XXV Assistant Judge, Page 7 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/08/2025 04:17:36 pm ) C.R.P.No.1548 & 1553 of 2025 City Civil Court, Chennai.
2.The Section Officer, VR Section, High Court, Madras.
N. SATHISH KUMAR, J.
mkn C.R.P.Nos.1548 & 1553 of 2025 Page 8 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/08/2025 04:17:36 pm ) C.R.P.No.1548 & 1553 of 2025 04.08.2025 Page 9 of 9 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/08/2025 04:17:36 pm )