Karnataka High Court
M/S Iti Limited vs M/S Tejas Networks Limited on 18 July, 2025
Author: S Sunil Dutt Yadav
Bench: S Sunil Dutt Yadav
-1-
NC: 2025:KHC:26951
WP No. 35377 of 2024
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 18TH DAY OF JULY, 2025
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 35377 OF 2024 (GM-RES)
BETWEEN:
1. M/S ITI LIMITED
A GOVERNMENT OF INDIA UNDERTAKING
HAVING ITS REGISTERED OFFICE
AT ITI BHAVAN, DOORAVANINAGAR
BENGALURU-560015
REPRESENTED BY
ITS ADDITIONAL GENERAL MANAGER
MR J S HIGGINS
...PETITIONER
(BY SRI. RICAB CHAND., ADVOCATE)
AND:
1. M/S TEJAS NETWORKS LIMITED
Digitally A COMPANY INCORPORATED UNDER THE
signed by COMPANIES ACT 1956
PRAKASH N
Location:
HAVING ITS REGISTERED OFFICE AT:
HIGH PLOT NO.25, 5TH FLOOR,
COURT OF J P SOFTWARE PARK, ELECTRONIC CITY,
KARNATAKA
PHASE 1 HOSUR ROAD,
BENGALURU-560100
EMAIL [email protected]
PHONE 080-41794600 / 700/800
THROUGH ITS DIRECTOR
2. THE MICRO, SMALL MEDIUM ENTERPRISES
FACILITATION COUNCIL BENGALURU
DEPARTMENT OF INDUSTRIES AND COMEMRCE
NO.49, GROUND FLOOR, SOUTH BLOCK
KHANIJA BHAVAN,
RACE COURSE ROAD
-2-
NC: 2025:KHC:26951
WP No. 35377 of 2024
HC-KAR
BENGALURU-560001
THROUGH ITS MEMBER SECRETARY
...RESPONDENTS
(BY SRI. SUSHAL TIWARI.N., ADVOCATE FOR R-1;
R-2 IS SERVED)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE
ORDER DATED 07TH NOVEMBER 2024 RECEIVED ON 18TH
NOVEMBER, 2024 PASSED IN CASE NO. 14/2020 BY THE
MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL,
BENGALURU (R2) ANNEXURE-A, ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:
CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
ORAL ORDER
The petitioner has called in question validity of the order passed in Case No.14/2020 by the Micro, Small Medium Enterprises Facilitation Council, Bengaluru, at Annexure-A.
2. It is submitted that order at Annexure-A has not taken note of the objections filed by the petitioner, copy of which is produced at Annexure-K. It is submitted that there are certain jurisdictional issues raised including validity of reference and same ought to have been taken note before passing order at Annexure-A. -3- NC: 2025:KHC:26951 WP No. 35377 of 2024 HC-KAR
3. Per contra, Sri Sushal Tiwari N, learned counsel appearing for respondent No.1 submits that he has filed statement of objections to the response of the petitioner which is produced at Annexure-L. It is submitted that there are certain restrictions on exercise of power under Section 18 (2) of the MSME Act r/w Section 65 to 81 of the Arbitration and Conciliation Act. The Court does not intend to enter into the merits of the contentions raised.
4. Perusal of the order at Annexure -A does not contain any reference to the objections raised. Only on such ground order at Annexure-A is set aside and matter is remitted in case No.14/2020 to be reconsidered by the Micro, Small Medium Enterprises Facilitation Council, Bengaluru. It must be noticed even if the council were of the view that Section 18(2) confers limited jurisdiction, nevertheless contentions of the petitioner at Annexure-K ought to have been adverted to. Accordingly petition is disposed of.
5. All contentions of both sides are kept open. -4-
NC: 2025:KHC:26951 WP No. 35377 of 2024 HC-KAR
6. Learned counsel for the respondents submits that pursuant to the order passed in Case No.14/2020, the Arbitration and Conciliation Centre had taken up the matter and the respondent has paid his share of the fees.
7. It is submitted that by virtue of the present order passed as the Arbitration proceedings also would have to be closed. The fees paid by the respondent and petitioner may be taken note of and not forfeited while keeping the same to be adjusted if matter comes up for arbitration at the subsequent point of time.
8. Said submission is taken note of. The Arbitration and Conciliation Centre, Bengaluru, ought to take note of the observations made herein and not proceed to forfeit the fee paid.
9. Both parties are directed to appear before the Micro, Small Medium Enterprises Facilitation Council, Bengaluru, without further notice on 31.07.2025.
Sd/-
(S SUNIL DUTT YADAV) JUDGE Psg*:List No.: 1 Sl No.: 26