2019 (2) TMI 2082

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.... December, 2018 in W.P.(C) No.13659/2018 dismissing the writ petition filed by the petitioner, this appeal has been filed under Clause 10 of the Letters Patent Act. The writ petition was filed by the appellant impugning the order dated 3rd October, 2018 passed by the Micro and Small Enterprises Facilitation Council (hereinafter referred to as "the Felicitation Council‟) referring a dispute between the appellant and respondent No.2 for arbitration under the aegis of Delhi International Arbitration Centre. 2. This appeal has been filed primarily on the ground that in the agreement entered into between the appellant and respondent No.2 (M/s Slipco Constructions Private Limited), there was an independent arbitration clause and once the....

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....as under:- "18. Reference to Micro and Small Enterprises Facilitation Council.- (1) Notwithstanding anything contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council. (2) On receipt of a reference under sub-section (1), the Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such an institution or centre, for conducting conciliation and the provisions of sections 65 to 81 of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to....

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....that on failure of the conciliation, the matter has to be referred for arbitration under sub-Section (3) of Section 18 and the impugned order only refers to the action taken by the Felicitation Council for reference to the arbitration on failure of the conciliation. 6. The learned writ Court has rightly rejected the contention of the appellant to the effect that once there was an arbitration agreement, therefore, the arbitration should have been as per the arbitration agreement. The MSMED Act is applicable in the dispute in question, in view of a decision rendered in the case of Bharat Heavy Electricals Limited vs. The Micro and Small Enterprises Facilitations Centre& Anrs., (2017) SCC Online (Delhi) 10604 and the appellant themselves ha....