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M.S.Sajith Kumar vs State Of Kerala
2023 Latest Caselaw 2185 Ker

Citation : 2023 Latest Caselaw 2185 Ker
Judgement Date : 10 February, 2023

Kerala High Court
M.S.Sajith Kumar vs State Of Kerala on 10 February, 2023
             IN THE HIGH COURT OF KERALA AT ERNAKULAM
                              PRESENT
          THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE
                                 &
         THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN
     FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944
                        WA NO. 1468 OF 2020
 AGAINST THE JUDGMENT IN WP(C) 26778/2014 OF HIGH COURT OF KERALA


APPELLANT/PETITIONER:

          M.S.SAJITH KUMAR
          AGED 54 YEARS
          PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTATE,
          UMAYANALLOOR P.O., KOLLAM-691589.
          BY ADVS.
          P.R.VENKATESH
          SRI.G.KEERTHIVAS


RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, SECRETARIAT, THIRUVANANTHAPURAM-695001. 2 MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL, REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE), VIKAS BHAVAN, THIRUVANANTHAPURAM-695001. 3 TAMIL NADU STATE TRANSPORT CORPORATION DIVISION NO.IV, REPRESENTED BY ITS MANAGING DIRECTOR, VILLIPURAM DIVISION NO.I, 3/137, SALAMEDU, VELAYUDHA REDDY P.O., VILLIPURAM, TAMIL NADU-605602. BY ADVS.

SRI.SUBHASH CYRIAC SMTSHEEBA JOSEPH

OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 148 OF 2021 AGAINST THE JUDGMENT IN WP(C) 27050/2014 OF HIGH COURT OF KERALA APPELLANT/PETITIONER:

M.S.SAJITH KUMAR, PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTATE, UMAYANALLOOR P.O, KOLLAM 691 589.

BY ADVS.

P.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES , SECRETARIAT, THIRUVANANTHAPURAM- 695 001.

2 MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE) VIKAS BHAVAN, THIRUVANANTHAPURAM- 695

001. 3 METROPOLITAN TRANSPORT CORPORATION DIVISION NO. II, REPRESENTED BY ITS MANAGING DIRECTOR, AYANAPURAM, CHENNAI, TAMIL NADU- 600 023. OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, ALONG WITH WA.1468/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 184 OF 2021 AGAINST THE JUDGMENT IN WP(C) 26128/2014 OF HIGH COURT OF KERALA APPELLANT/PETITIONER:

M.S.SAJITH KUMAR AGED 54 YEARS PROPRIETOR,HARDI TREBERS,INDUSTRIAL ESTATE, UMAYANALLOOR P.O.,KOLLAM-691 589.

BY ADVS.

P.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT,DEPARTMENT OF INDUSTRIES,SECRETARIAT, THIRUVANANTHAPURAM-695

001. 2 MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL, REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE),VIKAS BHAVAN,THIRUVANANTHAPURAM-695 001. 3 TAMIL NADU STATE TRANSPORT CORPORATION, DIVISION NO.1 , REPRESENTED BY ITS MANAGING DIRECTOR,BYE PASS ROAD,MADHURAI,TAMIL NADU-625

010. OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 1499 OF 2020 AGAINST THE JUDGMENT IN WP(C) 25215/2014 OF HIGH COURT OF KERALA APPELLANT/PETITIONER:

M.S.SAJITH KUMAR AGED 54 YEARS PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTATE, UMAYANALLOOR P.O, KOLLAM-691 589

BY ADVS.

P.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, SECRETARIAT, THIRUVANANTHAPURAM-695

2 MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE), VIKAS BHAVAN, THIRUVANANTHAPURAM. 3 STATE EXPRESS TRANSPORT CORPORATION NO.2, REPRESENTED BY ITS MANAGING DIRECTOR, PALLAVANSALAI, CHENNAI-02.

OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, ALONG WITH WA.1468/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 325 OF 2021 AGAINST THE JUDGMENT IN WP(C) 25755/2014 OF HIGH COURT OF KERALA APPELLANT/PETITIONER:

M.S.SAJITH KUMAR AGED 54 YEARS PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTATE, UMAYANALLOOR P O, KOLLAM-691589.

BY ADVS.

P.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, SECRETARIAT, THIRUVANANTHAPURAM- 695001.

2 MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE), VIKASS BHAVAN, THIRUVANANTHAPURAM-695001. 3 TAMIL NADU STATE TRANSPORT CORPORATION DIVISION NO.1 REPRESENTED BY ITS MANAGING DIRECTOR, NO.12, RAMAKRISHNA ROAD, SELAM, TAMIL NADU-636007. OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, ALONG WITH WA.1468/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 434 OF 2021 AGAINST THE JUDGMENT IN WP(C) 27060/2014 OF HIGH COURT OF KERALA APPELLANT/PETITIONER:

M.S.SAJITH KUMAR AGED 54 YEARS PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTATE, UMAYANALLOOR P.O., KOLLAM-691589.

BY ADVS.

P.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, SECRETARIAT, THIRUVANANTHAPURAM- 695001.

2 MICRO SMALL ENTERPRISES FACILITATION COUNCIL, REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE), VIKAS BHAVAN, THIRUVANANTHAPURAM- 695001.

3 TAMIL NADU STATE TRANSPORT CORPORATION, REPRESENTED BY ITS MANAGING DIRECTOR, MADHURAI DIVIION NO. IV, BYE PASS ROAD, DINDIGUL, TAMIL NADU-624004.

OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, ALONG WITH WA.1468/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 171 OF 2021 AGAINST THEJUDGMENT IN WP(C) 12472/2015 OF HIGH COURT OF KERALA

APPELLANT/PETITIONER:

M.S.SAJITH KUMAR PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTATE, UMAYANALLOOR P.O., KOLLAM-691 589.

BY ADVS.

SRI.P.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTREIS, SECRETARIAT, THIRUVANANTHAPURAM-695

001. 2 MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE), VIKAS BHAVAN, THIRUVANANTHAPURAM-695

001. 3 TAMIL NADU STATE TRANSPORT CORPORATION MADHURAI DIVISION NO.II (NO. 1 AND 2) REPRESENTED BY ITS MANAGING DIRECTOR, VANNARPETTAI P.O., THIRUNELVELI, TAMIL NADU-627 003. OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, ALONG WITH WA.1468/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 476 OF 2021 AGAINST THE JUDGMENT IN WP(C) 25759/2014 OF HIGH COURT OF KERALA

APPELLANT/PETITIONER:

M.S.SAJITH KUMAR AGED 43 YEARS PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTATE, UMAYANALLOOR P.O., KOLLAM-691 589.

BY ADVS.

P.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, SECRETARIAT, THIRUVANANTHAPURAM-695

001. 2 MICRO SMALL ENTERPRISES FACILITATION COUNCIL, REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE), VIKAS BHAVAN, THIRUVANANTHAPURAM-695

001. 3 METROPOLITAN TRANSPORT CORPORATION, DIVISION NO.II, REPRESENTED BY ITS MANAGING DIRECTOR, AYANAPURAM, CHENNAI, TAMIL NADU-600 023. OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, ALONG WITH WA.1468/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 135 OF 2021 AGAINST THE JUDGMENT IN WP(C) 26072/2014 OF HIGH COURT OF KERALA

APPELLANT/PETITIONER:

M.S.SAJITH KUMAR, PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTATE, UMAYANALLOOR P O, KOLLAM-691 589.

BY ADVS.

P.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, SECRETARIAT, THIRUVANANTHAPURAM-695 001. 2 MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL , REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE), VIKAS BHAVAN, THIRUVANANTHAPURAM-695

001. 3 TAMIL NADU STATE TRANSPORT CORPORATION, MADHURAI DIVISION NO. V, REPRESENTED BY ITS MANAGING DIRECTOR, NO.9, KUMARASWAMI RAJA NAGAR, VIRUDHANAGAR, TAMIL NADU-626 003.

OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, ALONG WITH WA.1468/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 225 OF 2021 AGAINST THE JUDGMENT IN WP(C) 26837/2014 OF HIGH COURT OF KERALA APPELLANT/PETITIONER:

M.S.SAJITH KUMAR AGED 54 YEARS PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTAET, UMAYANALLOOR P.O., KOLLAM-691589.

BY ADV P.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, SECRETARIAT, THIRUVANANTHAPURAM- 695001.

2 MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL, REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE), VIKAS BHAVAN, THIRUVANANTHAPURAM- 695001.

3 STATE EXPRESS TRANSPORT CORPORATION, DIVISION NO.1 REPRESENTED BY ITS MANAGING DIRCTOR, SHENKOTTAI, TAMIL NADU.

OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, ALONG WITH WA.1468/2020 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE & THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WA NO. 193 OF 2021 AGAINST THE JUDGMENT IN WP(C) 26770/2014 OF HIGH COURT OF KERALA

APPELLANT/PETITIONER:

M.S.SAJITH KUMAR AGED 54 YEARS PROPRIETOR, HARDI TREBERS, INDUSTRIAL ESTATE, UMAYANALLOOR P.O., KOLLAM-691589.

BYP.R.VENKATESH SRI.G.KEERTHIVAS

RESPONDENTS/RESPONDENTS:

1 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, SECRETARIAT, THIRUVANANTHAPURAM- 695001.

2 MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL, REPRESENTED BY ITS CHAIRMAN (DIRECTOR OF INDUSTRIES AND COMMERCE), VIKAS BHAVAN, THIRUVANANTHAPURAM-695001. 3 TAMIL NADU STATE TRANSPORT CORPORATION, VILLIPURAM DIVISION NO.III (NO.1 AND 2), REPRESENTED BY ITS MANAGING DIRECTOR, NO.9, SHEIKPAT NAGAR, KANCHIPURAM, TAMIL NADU-631501.

OTHER PRESENT:

P. SANTHOSH KUMAR SPECIAL GP FOR R1 & R2

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA.No. 1468 of 2020 & Conn. Cases

Dated this the 10th day of February, 2023

JUDGMENT

[WA Nos.1468/2020, 148/2021, 184/2021, 1499/2020, 325/2021, 434/2021, 171/2021, 476/2021, 135/2021, 225/2021, 193/2021]

A. MUHAMED MUSTAQUE, J.

These appeals are at the instance of applicants who

have raised claim before the Micro and Small Enterprises

Facilitation Council, Kerala. They claimed that Tamil Nadu

State Road Transport Corporation is liable to make payments

for various supplies made by them. This has been considered

by the Council and noting that there was a considerable

delay involved, rejected the claim and passed an award. The

award passed is an arbitration award as referable under

Section 18(3) of the Micro, Small and Medium Enterprises

Development Act, 2006.

2. The challenge made before the learned Single Judge

against the arbitration was unsuccessful. The learned Single

Judge found that efficacious alternative remedy is available

under Section 34 of the Arbitration and Conciliation Act, to

set aside the award.

WA.No. 1468 of 2020 & Conn. Cases

3. The appellant's case is that, award itself is a nullity,

inasmuch as, there was no compliance of Section 18(2) of the

above Act which contemplates mandatory conciliation prior

to initiation of arbitration proceedings.

4. The learned counsel also placed reliance on the

judgment of the Apex Court in Jharkhand Urja Vikas

Nigam Limited VS State of Rajasthan (2022 1 KLT 141).

The Apex Court in above case held as follows:

"13. The order dated 06.08.2012 is a nullity and runs contrary not only to the provisions of MSMED Act but contrary to various mandatory provisions of Arbitration and Conciliation Act, 1996. The order dated 06.08.2012 is patently illegal. There is no arbitral award in the eye of law. It is true that under the scheme of the Arbitration and Conciliation Act, 1996 an arbitral award can only be questioned by way of application under Section 34 of the Arbitration and Conciliation Act, 1996. At the same time when an order is passed without recourse to arbitration and in utter disregard to the provisions of Arbitration and Conciliation Act, 1996, Section 34 of the said Act will not apply. We cannot reject this appeal only on the ground that appellant has not availed the remedy under Section 34 of the Arbitration and Conciliation Act, 1996. The submission of the learned senior counsel appearing for the 3rd respondent that there was delay and WA.No. 1468 of 2020 & Conn. Cases

laches in filing writ petition also cannot be accepted. After 06.08.2012 order, the appellant after verification of the records has paid an amount of Rs.64,43,488/- on 22.01.2013 and the said amount was received by the 3rd Page 5 of 6 respondent without any protest. Three years thereafter it made an attempt to execute the order in Execution Case No.69 of 2016 before the Civil Judge, Ranchi, which ultimately ended in dismissal for want of territorial jurisdiction, vide order dated 31.01.2017. Thereafter S.B.Civil Writ Petition No.11657 of 2017 was filed questioning the order dated 06.08.2012 before the Rajasthan High Court. In that view of the matter it cannot be said that there was abnormal delay and laches on the part of the appellant in approaching the High Court. As much as the 3rd respondent has already received an amount of Rs.63,43,488/- paid by the appellant, without any protest and demur, it cannot be said that the appellant lost its right to question the order dated 06.08.2012. Though the learned counsel appearing for the respondents have placed reliance on certain judgments to support their case, but as the order of 06.08.2012 was passed contrary to Section 18(3) of the MSMED Act. and the mandatory provisions of the Arbitration and Conciliation Act, 1996, we are of the view that such judgments would not render any assistance to support their case."

5. As observed by the Apex Court, any arbitration

award without recourse to conciliation is a nullity. Since, an WA.No. 1468 of 2020 & Conn. Cases

arbitration is conducted by invoking statutory provision,

there is no embargo for this Court to set right the procedure

adopted for arbitration in accordance with the statutory

provision. Being such circumstances, we are of the view, the

impugned award has to be set aside for re-consideration.

6. It is to be noted that arbitration claim was rejected

on the footing that limitation would apply. In case the

conciliation is failed and the arbitration is initiated, the

arbitration council shall advert to Section 2(4) of the

Arbitration and Conciliation Act and decide whether

limitation would apply or not, before deciding the matter.

7. We make it clear that, before initiating arbitration,

the council shall refer the dispute for conciliation at the first

level and if the matter is not settled, direct to consider the

claim on merit invoking provision for arbitration.

8. The learned counsel for the Tamil Nadu State Road

Transport Corporation argued that the applicants before the

council have no registration under the MSMED Act. This

aspect shall also be gone into before proceeding further in

the matter. We direct the parties to report before the

council's office for initiating proceedings as directed by this

Court on 20.03.2023.

WA.No. 1468 of 2020 & Conn. Cases

The impugned judgment is set aside and writ appeals

are allowed. The impugned awards are also set aside.

Sd/-

A.MUHAMED MUSTAQUE

JUDGE

Sd/-

SHOBA ANNAMMA EAPEN JUDGE mtk

 
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