2022 (7) TMI 1560

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... a Medium Enterprise. The Petitioner had filed an Application referable to section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (Act, 2006) against the present Respondent no.4 for payment of the amount. Request was made that the Council may act as a Conciliator and or Arbitrator. If conciliation fails then matter is to be referred to Arbitration. The Micro and Small Enterprises Facilitation Council rejected the Application on the ground that the Petitioner is a Medium Enterprise and cannot invoke the Jurisdiction of the Council under section 18 of the Act, 2006. 3 The learned counsel submits that the Petitioner has made a categorical statement that it is a supplier of the goods manufactured and produced by the small ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....supplied or services rendered by the supplier, the buyer shall be liable to pay the amount with interest thereon as provided under section 16. Section 18 : 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 A....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t, 2006. 9 The definition of supplier is an inclusive definition. Clause (iii) of the section 2(n) of the Act, 2006 would be relevant for our consideration. According to the said definition, the terminology "supplier" would take within its fold any company / co-operative Society, trust or a body, by whatever name called, registered and constituted under any law for the time being in force and engaged in selling goods produced by micro or small enterprises and rendering services which are provided by such enterprises. The Company registered under the Companies Act would be within the definition of "supplier" if it is engaged in selling goods produced by micro or small enterprise and rendering services which are provided by such enterprises.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....6, then, it would be doing violence to section 2(n) read with section 17 and 18(1) of the Act, 2006. Reading the provision of section 2(n)(iii), section 17 and 18(1) harmoniously the only irresistible conclusion that can be drawn is that the enterprise other than the Micro and Small Enterprise may also be entitled to take recourse to section 18 of the Act, 2006. Provided, it is a supplier of the goods produced by the micro or small enterprise and rendering service which are provided by such enterprises. 11 The fundamental rule of construction of the provisions is to read the provision literally, i.e., by giving to the words their ordinary and natural meaning. Every provision of the statute has to be construed with reference to the context ....