Steel Authority Of India Limited vs Alcast Engineering Pvt. Limited ...
2022 Latest Caselaw 1681 Jhar

       IN THE HIGH COURT OF JHARKHAND AT RANCHI
                           [Civil Writ Jurisdiction]
                           W.P.(C) No. 142 of 2015
      Steel Authority of India Limited, a Government of Company
      within the meaning of Section 617 of the Companies Act,
      represented through Sri Raesh Kumar                   .... .. ... Petitioner(s)
                                      Versus
       Alcast Engineering Pvt. Limited having its office 2A-29 Industrial Area, Bokaro
       Steel City, Bokaro, represented through Sri Bijay Kumar Karkania, Managing
       Director      .                                       .. ... ...Respondent(s)
                                       ...........

CORAM :HON'BLE MR. JUSTICE KAILASH PRASAD DEO [Through : Video Conferencing] .........

       For the Petitioner                      : Mr. Indrajit Sinha, Advocate
                                                 Mr. Amitabh Prasad, Advocate
       For the respondent                      : Mr. Rahul Saboo, Advocate
                                                 ......

06/ 27.04.2022. Heard, learned counsel for the parties.

Mr. Indrajit Sinha, learned counsel for the petitioner assisted by Mr. Amitabh Prasad, learned counsel has submitted, that the petitioner-Steel Authority of India Limited has preferred the instant Writ Petition against the Award, as contained in Memo No.3287, Ranchi dated 04.12.2014 passed by learned Chairman, Jharkhand Micro Small and Medium Enterprises Facilitation Council, Ranchi, in Case No.JHSEFC 12/2011 whereby seven member Committee has passed an award against the petitioner- Steel Authority of India Limited which is in contraventions of Section 21 of the Micro, Small & Medium Enterprises Development Act, 2006.

Mr. Indrajit Sinha, learned counsel for the petitioner assisted by Mr. Amitabh Prasad, learned counsel has further submitted, that the issue involved in the instant Writ Petition has already been taken care of by the Hon'ble Division Bench in analogous cases i.e. W.P.(C) No.3699 of 2015 and other writ petitions, in the case of Electrosteel Steels Limited, Bokaro vs. The State of Jharkhand & Ors, whereby it has been held that composition of Micro, Small & Medium Enterprises Facilitation Council contrary to Section 21 of the Act, 2006 is bad in law, as such, the Award passed by 7- Member Committee in contraventions of Section 21 of the Act is also bad in law.

Mr. Rahul Saboo, learned counsel for the respondent- Alcast Engineering Pvt. Limited has submitted, that the said judgment dated 05.03.2020 of the Hon'ble Division Bench has not been been assailed till date, as such,, this Court may pass order, in accordance with law.

Mr. Rahul Saboo, learned counsel for the respondent- Alcast Engineering Pvt. Limited has further submitted, that State has already taken note of the same and accordingly amended the rule, as such, this Court may pass necessary order.

Considering the rival submissions of the parties and looking into the facts

and circumstances of the case, since the order has been passed by authority who has no jurisdiction to pass such order, as such, the impugned order is required to be set aside.

Accordingly, the impugned order dated 04.12.2014 is hereby set aside. However, Jharkhand Micro, Small & Medium Enterprises Facilitation Council may pass order in accordance with law after hearing the parties afresh within a period of 90 days from the date of production of a copy of this order.

Pending I.A(s), if any, stands closed.

(Kailash Prasad Deo, J.) Sandeep/