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TMI Blog2014 (2) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... centre providing alternate dispute resolution services. Sub-section (4) of Section 18 begins with a non obstante clause which operates notwithstanding anything contained in any other law for the time being in force. Under sub-section (4), the Council or as the case may be, the centre providing alternative dispute resolution services shall have jurisdiction to act as an Arbitrator or Conciliator in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India - The Act thus provides for a statutory remedy of an arbitration in sub-section (4) to Section 18 notwithstanding anything to the contrary contained in any other law for the time being in force. In the present case, the Council is seized of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not been made. In pursuance of the aforesaid claim petition, a notice was issued by the Council, which is impleaded as the second respondent, to the petitioner on 3 December 2012. On 7 January 2013, the petitioner filed an objection under Section 8 of the Arbitration and Conciliation Act, 1996 stating that there is an arbitration agreement between the parties and submitted that the dispute be referred to arbitration in terms of the arbitration agreement. On 27 May 2013, the petitioner was asked to appear before the Member of the Facilitation Council at Lucknow for conciliation. Thereafter, further proceedings have taken place and on 30 December 2013, an order has been passed observing that the conciliation has not been successful. On 17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith. Section 7 provides for the classification of enterprises as micro enterprises, small enterprises and medium enterprises respectively. Under the said Act, the State Government is required to establish Micro and Small Enterprises Facilitation Councils. Section 15 provides that where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day. The proviso, however, stipulates that in no case would the period agreed upon between the supplier and the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lternate dispute resolution services for such arbitration and the provisions of the Arbitration and Conciliation Act, 1996 shall then apply to the dispute as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section (1) of Section 7 of that Act. (4) Notwithstanding anything contained in any other law for the time being in force, the Micro and Small Enterprises Facilitation Council or the centre providing alternate dispute resolution services shall have jurisdiction to act as an Arbitrator or Conciliator under this section in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India. (5) Every reference made under this section shall be decided within a period o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Though there may be an arbitration agreement between the parties, the provisions of Section 18(4) specifically contain a non obstante clause empowering the Facilitation Council to act as an Arbitrator. Moreover, Section 24 of the Act states that Sections 15 to 23 shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force. 8. The petitioner has appeared before the Council and we see no reason to interdict the proceedings before the Council at this stage. Once the conciliation is unsuccessful, the Council will necessarily have to act in pursuance of the provisions of Section 18. Hence, no case for interference is made out. The petition is, accordingly, dismissed. There shal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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