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TMI Blog2022 (9) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court completely overlooked the inherent lack of jurisdiction on the part of the Facilitation Council to pass the award dated 27.01.2016. What is worse is the fact that the illegality committed by the Facilitation Council in the year 2016 has now received a stamp of approval, by the High Court remanding the matter back to the Facilitation Council. The High Court has failed to examine the powers conferred upon the Facilitation Council. The High Court has also omitted to take note of the fact that MSMED Act was not intended to provide a gateway for hopelessly time barred claims. The appeal is allowed and the impugned order of the High Court is set aside. - Civil Appeal No(s). 6555/2022 with CONTEMPT PETITION (CIVIL) NO.236 of 202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent was entitled to retain scrap. 5. However, the appellant raised a debit note for Rs.35,000/on the 1st respondent, towards the differential value of brass scrap generated during the period of supply. 6. It appears that the 1st respondent raised serious objections to the debit note in the year 1998 and after protracted correspondence the appellant made payment of the sum of Rs.35,000/which represented the value of the debit note, by way of a cheque dated 15.12.2003. According to the appellant, the payment was by way of a settlement. Therefore, the minutes of the settlement were also recorded on 30.04.2004, in which the representative of the appellant and proprietor of the 1st respondent signed. 7. After two years of the aforesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filing the writ petition, respondent no.1 also moved the Facilitation Council with an application for reconsideration of their decision dated 17.02.2009. Since respondent no.1 kept on hammering the Facilitation Council through his repeated correspondence to various officers of the Government, including the Chief Secretary, the Facilitation Council reviewed its earlier decision and passed an award dated 27.01.2016, directing the appellant to pay a sum of Rs.7,21,512/, for the period up to 31.12.2015. Future interest at 22% p.a. was also awarded if payments were further delayed. 11. Therefore, aggrieved by the said award dated 27.01.2016, the appellant filed a writ petition in W.P.No.6928 of 2016. This writ petition was taken up along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in W.P.No.3508 of 2013, after a period of four years. The writ petition itself could not have been entertained by the High Court for two reasons namely, (i) respondent no.1 was guilty of delay and laches; and (ii) also the remedy of a writ petition was not the appropriate remedy. 14. During the period between 2009-2013, even when the writ petition was pending, respondent no.1 kept on putting pressure on the Facilitation Council through its correspondence with several Government departments. Eventually the Facilitation Council seems to have buckled under pressure and took up the dispute for reconsideration. The MSMED Act does not empower the Facilitation Council to review its own decisions. But unfortunately, the Facilitation Council reop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd respondent no.1 ought to have initiated other proceedings to challenge the award. Instead, he chose to put repeated pressure on the Facilitation Council to review its earlier decision. Unmindful of the fact that they have no such power, the Facilitation Council reopened its earlier decision and passed the award. The High Court completely overlooked the inherent lack of jurisdiction on the part of the Facilitation Council to pass the award dated 27.01.2016. 17. What is worse is the fact that the illegality committed by the Facilitation Council in the year 2016 has now received a stamp of approval, by the High Court remanding the matter back to the Facilitation Council. The High Court has failed to examine the powers conferred upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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