Citation : 2024 Latest Caselaw 8884 AP
Judgement Date : 25 September, 2024
wen" [S329] "UN THE HIGH COURT OF ANDHRA PRADESH AT ANMARAVAT (SPECIAL ORIGINAL JURISDICTION) WEDNESDAY, THE TWENTY FIFTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FOUR 'PRESENT: THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGAD WRIT PETITION NO: 24250 OF 2084 ™ Between: Hoard Of Visakhapainam Por Authority, Rep. by its Asst. Engineer, Engineering Depariment, Administrative Office Bullding, Part Area, Visakhapatnam - 530 035 Anchra Pradesh | . Petitioners AND 1. THE UNION OF INDIA, Rep by its Secretary, The Ministry of Micro Small and Maecium Enterprises UdyogBhawan Rafi Marg New Delhi - PION, 2. Andhra Pradesh Micro And Small Enterprises Facilitation Council, Established uncer Section 20 of Micro Small and Medium Enterprises Development Act 2008, APMSEFC., Represented by its Commissioner, Sih Flear APHC, Towers, Auto > Nagar, Mangalagin, Guntur District - §22503. 3. The Regional Level Micro and Small merprises Faciiation Council Visakhapainam, Rep. by is shehwan Ola. District Industries Officer, Oistrct Industries Centre (DIC), industrial Estate, Kancharapaiam, Visakhapatnam - 530 c07, 4. Mis Gayathri Engineering Construc ions, D.No 36-46-57, Rancharapaiem, Visakhapatnam ~ 560008. . Respondents Petition under Article 228 of the Consiitution of india is Med praying that in the circumstances stated in the af Mdavit Heel therewith, the High Court TSeParwes AP} " x. nt pondent No. Pa ords an the Re sondent No 8. a 5 3 the Ras culany 08.08, 20: Rart TOF 2024 > Nn ~~ LAND SRS Po one BS Mey GY 3 tis me AS PPS Oy & ree foes : Hy for Bee he petition coming on : i apport thes NM we at the x ae } Nos.2 to 3, the Court 9 ORDER
"Heard learned counsel for tie petivoner and learned counsel for
the respondents,
aN
Learnad counsel for the petitioner submits that, respondent Nos. 2 & 3 have no jurisdiction tO proceed further by invoking arbitration proceedings under Section 183) of MSMED Act, 2008, pursuant to the notice dated 09.08.2024 in view of the settled preposition of law as brought to the notice of the 3 respondent council,
Learned counsel further submits that, a Single Jucige Bench of this Hon'ble Court in its order dated 26.04.2023. in Rastrivya ispat Nigam Limited Vs. The Union of {nofia and Ors., MANUVAP/2896/202? had dealt the aspect of applicability of MSMED Act, 2006, to the civil construction contracts and held that the Act of 2006 is not applicable to the 'works contract. The relevant portion of the judgment is extracted hereunder:.
"38. Therefore, this Court for aff fhe above reasons
and intine with the case law cited holds that the work
that the Act 27, 2006 would not apply fo the works
comects which were awarded by the Visakhapatnam
Steal Plant in these cases by a process of tender Same
slement of Supply is involved in these works and that by
self is not enough for this Court to hold that the stand
of the respondents is correct.
OE #3. Once this Court holds thar the Act dees not
apply, the council also does Hot have the jurisdiction to
entertain and decide this sart of dispute. # means tat
the subject matter fs whally outside its power or fotaily
foreign to is ambit... "
He further submite that this Hon'ble Court through various decisions defined the term "works. contract", and further held that once the sublect work came under the definition of Works contract as defined by this Court, the 2nd respondent has no jurisdiction to procesd further under Section 18 (3) of the MSMED Act,
Nis further submitted that Rule 9 of the APMSEFC Rules provides for hearing and written proceedings, wherein, Sub-Rule {S} Rule provides that the Council, on such terms as it may think FE al any stage
for reasonable or sufficient cause, adjourn the hearing from time fo tine,
but # shall so canduct the Hraceecd! ings that the decision is given as far
as possible within ninety days of the first date of hearing.
Sri N. Hamanth Kumar, learned counsel appeared for respondent
No.1.
in view of the submissions made by the learned counsel for the petitioner, this Court finds that, there is a prime-lacie case made out by the petitioner, Hence, there shall be an interim direction as grayed for, for a period of four (04) weeks.
Learned counsel for the petitioner is permitted fo take out personal notice an respondent Nos.3 to 4 through RPAD and file proof of service
in the Registry.
List the matter affer three (O23) weeks." a:
SOLBLOMITT i JOSERN ASSISTANT REGISTRAR ATRUE COPY! "SECTION OFFICE ER
"Ta,
1. The Secretary, THE UNION OF INDIA, The Ministry of Micro Smaii and
Meclum Enterprises (id fagBhawan Rafi Marg New Delhi 110047.
bug
The Commissioner, Andhra Pra sesh Micro And Small Enterprises Faciitation Council, Estabils shed under Section 30 of Miers Small and Medium Enfernrisas Deve Honment Act 30 S08, APMSEFC 8 Flanr ABHC, Towers, Autc Nagar, Mangals agin, Guritur Disiriet . S39809,
The Chaivman, Regional Level Micro and Small Enterprises Facivtation
oi
Gouncll Visakhapatnam, Ofo. DNs
industries Centre (DIC >}, iehustrial §
Visakhanginam - S809
4. M/s Gayathri Enginsering Constructions, 0. No 38-48-57, Nancharapaiem, Visakhapatnam - 530008. (4 to 4 by RPAD)
S. One Ot io SRE RAVITEUA PADIR: Advocate [OPUC] 8, One Sn N.Hemanth Kumar, Counsel (OPUCT #7. One OC to Deputy Sofiniter General of} wa, High Court of Andhra Pradesh
fORUCI & One spare copy
HIGH COURT
NY, J
DATED 28/00/2024
Liat the matter affer three {03} weeks
ORDER
WE.NG 29280 of 2024
SIRECTION
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