Admission of arbitration petition in the high court
Dharmendra More
(Querist) 05 February 2016
This query is : Resolved
Dear Experts,
We are a pvt ltd co based in mumbai.We had given contract to a co who does civil works to do Epoxy flooring, wall coating and painting in our factory in the year 2010. We gave some advance to the co before starting the work for the material together with Purchase Order mentioning in the event of dispute the matter will be settled in Mumbai Jurisdiction. The co. completed did the shoddy job in context to Epoxy flooring as the flooring got peeled off within few days due to which our product which we manufactue and started receiving material returned from our customer. Because of this we suffered financial loss. We inform to the co.about this and Co sent their people to inspect and accepted that there was a flaw in the flooring job and assured us that they will redo the job which they did. But again the same problem repeated. Again they redid it again the same thing happened. Because of this we refused to pay them their outstanding money. They went to Micro small and medium council (the civil co is a small medium co)i Thane. While arguing there we informed the Council that it has no jurisdiction as the case is to be filed in mumbai jurisdiction. Irrespective of this, the MSME Council pass an order in civil co favour asking us to pay their outstanding amount together with interest three times than bank rate notified by RBI. Against this, we filed Arbitration Petition in the Bombay High Court. In reply to our petition the said civil co. filed an affidavit in the High Court saying as per Section 19 of MSME developement Act 2006 Bombay High Court has no jurisdiction and Thane District Court has a jurisdiction and 75% of the amount decided by the MSME Council should have been deposited in the Court else the the petition has no meaning.The section 19 of MSME development act 2006 is overriding section 34 of Arbitration Act.
In regard to this, can expert advise me as below :
1. Can Bombay High Court admit our Arbitration Petition on any ground.
2. If High Court admits the petition then do we have to deposit 75% amount of the total amount ordered by MSME Council.
3. Can we challenge in any Court of law in case High Court dismiss the petition.
Regards,
DM
Saurendra Rautray
(Expert) 06 February 2016
Dear Dharmendra,
I would advise you not to waste any further time rather the file section 34 application against the award. please remember the time period for section 34 is 3 month and 30 days from the date of the award.
Regards
Saurendra
Rautray&co
New Delhi
09437008255
www.rautray.com
Raj Kumar Makkad
(Expert) 06 February 2016
Being a commercial entity, you can easily bear the fee of a lawyer so better hire specialized services and don't depend upon this charity site.
Dharmendra More
(Querist) 09 February 2016
Dear Experts,
We have already filed the petition in the High Court and case has come on board. But hearing date is not yet known. We have already hired the Counsel to fight the case. I just want to have all of your views.
Ms.Usha Kapoor
(Expert) 22 August 2016
Now the matter is subjudice in High's court. Let's see whether it declares the MSME Council's proceedings legal and jurisdictional validity
Ms.Usha Kapoor
(Expert) 22 August 2016
Dear Client
Now THAT THE Highcourt HAS ADMITTED YOUR CASE IT' DECIDE TH LEGALITY OF MEME Council and their jurisdiction etc of directing you to deposit 75% of the total amount due from you. If High Court dismisses the case PROCEEDINGS AND THEIR DIRECTION TO DEPOSIT 75% of the total amount etc you can approach supreme court.
