Citation : 2026 Latest Caselaw 1451 Ori
Judgement Date : 17 February, 2026
Signature Not Verified
Digitally Signed
Signed by: SANGRAM DAS
Reason: Authentication
Location: High Court of Orissa, Cuttack
Date: 23-Feb-2026 16:29:32
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C) No. 1355 of 2026
(An application under Articles 226 & 227 of the Constitution of India)
Engineer-In-Chief,
Public Health (Urban)
Govt of Odisha, Bhubaneswar & Anr ....... Petitioner
-Versus-
M/s. Porel Dass Water and Effluent
Control Pvt.Ltd,
West Bengal & Anr. ....... Opposite Parties
Advocate(s) appeared in this case:-
For Petitioner : Mr. D.Nayak, AGA
For Opposite Parties : Mr. D.P.Nanda, Sr.Advocate for O.P.1
CORAM : JUSTICE B.P. ROUTRAY
JUDGMENT
th 17 February 2026
B.P. Routray,J.
1. Heard Mr. D.Nayak, learned AGA for the Petitioner and
Mr. D.P.Nanda, learned Senior Counsel for Opposite Party No.1.
2. Present writ petition is directed against impugned award
dated 16th April 2024 (Annexure-7) passed by the West Bengal State
Location: High Court of Orissa, Cuttack
Micro Small Enterprises Facilitation Council (herein after stated in
brief in short as W.B. Facilitation Council).
3. Opposite Party No.1 raised a dispute before W.B.
Facilitation Council regarding execution of a work relating to
"Augmentation of Water Supply to G.Udayagiri NAC" in the district
of Kandhamal and according to Opposite Party No.1 some
recoverable dues remain unpaid by the State-Petitioner.
4. The notice was issued at the stage of conciliation and an
objection was filed by the Present Petitioner, i.e. Executive Engineer,
P.H. Division, Govt. of Odisha. After the conciliation was failed the
matter was referred for arbitration and Case No.239 of 2022 was
registered on the file of W.B. Facilitation Council in terms of the
provision contained in The Micro, Small And Medium Enterprises
Development (MSMED) Act, 2006. Present Petitioner was the
Respondent in the arbitration proceeding and he did not appear there,
and simply sent a letter saying that they have already filed the reply
during conciliation proceeding. The arbitration proceeding was
proceeded ex-parte against present Petitioner and ultimately the
award was passed on 16th April 2024 in favour of Opposite Party
No.1 directing present Petitioner to pay a sum of Rs.2,88,22,258.46/-
Location: High Court of Orissa, Cuttack
as on 16th April 2024, payable within a period of 30 days from the
date of receipt of the award.
5. Present Petitioner did not take any step thereafter which
compels Opposite Party No.1 to file execution proceeding before the
Commercial Court, Bhubaneswar. Upon receipt of the notice of
execution proceeding, objection was raised by the Petitioner with
regard to jurisdiction of W.B. Facilitation Council to entertain the
arbitration proceeding. It is stated that said objection is still pending
consideration by the learned Executing Court.
6. Mr. Nayak, learned AGA submits on behalf of the
Petitioner that since the contract is a works contract, the MSME
Facilitation Council does not have any jurisdiction in terms of Section
18 of the Micro, Small And Medium Enterprises Development Act,
2006 to adjudicate any dispute in that respect and the reference made
to the W.B. Facilitation Council in respect of such works contract is
not at all maintainable being without jurisdiction. It is further
submitted by Mr. Nayak that present writ petition which is filed
challenging the award passed by the W.B. Facilitation Council is well
maintainable within the jurisdiction of this High Court for the reason
that the work and the contract both have been executed in Odisha.
Location: High Court of Orissa, Cuttack
7. Mr. Nanda, learned Senior Counsel appearing for Opposite
Party No.1 raises his objection at the outset regarding maintainability
of the present writ petition that an award passed by the W.B.
Facilitation Council at Kolkata cannot be amenable to the territorial
jurisdiction of this High Court. According to Mr. Nanda, the
Petitioner has to apply before the jurisdictional High Court in order to
challenge the W.B. Facilitation Council award passed at Kolkata, if
he is so advised. It is further submitted that the Petitioner has never
objected in their objection petition before W.B. Facilitation Council,
though submitted in course of the conciliation proceeding, that the
alleged contract is a works contract purely. Nowhere in their
objection petition, the Petitioner has stated anything regarding nature
of said contract or have raised the question of jurisdiction of the
facilitation council in that respect.
8. Thus as per the contentions made at the bar by rival parties,
it is found that the initial objection has been raised by Opposite Party
No.1 as to the territorial jurisdiction of this Court to entertain present
writ petition against the award passed by W.B. Facilitation Council.
On this score, it is admitted that the impugned award under
Annexure-7 passed by the W.B. Facilitation Council is an ex-parte
Location: High Court of Orissa, Cuttack
award where present Petitioner did not participate despite due service
of notice. What is contended on behalf of the Petitioner that the
contract is a works contract and therefore not amenable to the
jurisdiction of MSME Facilitation Council, is of course a question of
fact to be determined by the competent authority looking at the nature
of contract and the execution thereof. Nonetheless, present writ
petition is not filed questioning the nature of contract to be
interpreted, but it is directed against the award passed by W.B.
Facilitation Council dated 16th April 2024.
9. Going by the territorial jurisdictional aspect of this Court, it
is found prima facie that the impugned award having been passed by
W.B. Facilitation Council at Kolkata, the same would have been
challenged before the jurisdictional High Court having the territorial
jurisdiction over the place of award. Thus, the approach of the present
Petitioner to file present writ petition before this Court is not found
correct because the bone of contentions of the parties would be
regarding jurisdiction of W.B. Facilitation Council in respect of the
contract. It would not be prudent on the part of this court to entertain
the writ petition authorizing itself to exercise jurisdiction to entertain
the challenge against the award passed by W.B. Facilitation Council
Location: High Court of Orissa, Cuttack
at Kolkata. So, this Court having found lack of territorial jurisdiction
is not inclined to entertain the writ petition at the present stage.
Accordingly, the writ petition is disposed of granting liberty to the
Petitioner to approach appropriate forum.
10. As prayed by Mr. Nayak, learned AGA, it is further
observed that in the event, any application is preferred against the
impugned award dated 16th April 2024 (Annexure-7), within a period
of 45 (forty-five) days from today in the appropriate forum, no
coercive action shall be taken against the Petitioner till such period or
till filing of such application, whichever is earlier.
11. Urgent certified copy of this order be granted on proper
application.
(B.P. Routray) Judge
S.Das,Sr.Steno
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