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TMI Blog2019 (2) TMI 2082X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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 (9) TMI 2004 - DELHI HIGH COURT] and the appellant themselves having chosen to take recourse to the remedy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elicitation 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 there was an independent arbitration agreement between the parties, reference of the matter for statutory arbitration under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as the MSMED Act‟) is unsustainable. It was argued that merely because the appellant submitted to the conciliation process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference 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 such a dispute as if the conciliation was initiated under Part III of that Act. (3) Where the conciliation initiated under sub-section (2) is not successful and stands terminated without any settlement between the parties, the Council shall either itself take up the dispute for arbitration or refer to it any institution or centre providing altern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 having chosen to take recourse to the remedy under the MSMED Act are bound by the entire statutory provision contained in Section 18. The appellant had two options, either to take recourse to the arbitration agreement and insist on invoking the arbitration clause but having chosen to take recourse to the statutory remedy under the MSMED Act, the entire process, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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