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% 16.03.2023

1. This hearing has been done through hybrid mode.

2. The Petitioner - NBCC (India) Ltd. (NBCC) has filed the present petition challenging the impugned reference order dated 29th April, 2022.

3. In the present case, certain disputes arose between NBCC and Respondent No.2 - Promark Safety India Pvt. Ltd. (hereinafter, "Promark").

4. By letter of award dated 28th August, 2017, Promark was awarded a contract for carrying out miscellaneous interior works and supply of furniture at the NIA headquarters, office building at CGO Complex, Delhi. In respect of this letter of award, an invoice was raised by Promark on 29th June, 2018, which according to Promark has not been paid by NBCC.

5. On 1st July, 2019, Promark obtained its registration under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act). A claim was filed by Promark on 4th September, 2019 in respect of which the impugned reference was made by the MSEFC. It is admitted by both ld. Counsel for the parties that the registration of Promark under the MSME Act was subsequent to the conclusion and completion of the work itself.

7. In view of above two judgments, it is clear that if the registration under the MSME Act, is subsequent to the completion of the works, the MSME Act would not be applicable.

8. Accordingly, the impugned reference order dated 29th April, 2022 is quashed.

9. Promark is however permitted to avail of its remedies in accordance with law.

10. If it chooses to avail of its remedies within two weeks, the period from 4th September, 2019 till 31st March, 2023 shall stand excluded for the purposes of calculation of limitation and the benefit of Section 14 of the Limitation Act, 1963 shall be given.

11. The fee paid by Promark to DIAC shall also be refunded to Promark after deducting administrative charges, if any.