PunjabHaryana High Court Indian Drugs And Pharmaceuticals Ltd vs State Of Haryana And Others on 10 February, 2022 LPA NO.63 OF 2022(O&M) 1 CHANDIGARH LPA NO.63 OF 2022(O&M) Decided on : 10.02.2022 Indian Drugs & Pharmaceuticals Ltd. ...................Appellant versus State of Haryana and others ................Respondents CORAM HON'BLE MR.JUSTICE AUGUSTINE GEORGE MASIH HON'BLE MR. JUSTICE SANDEEP MOUDGIL Present Mr.Subhash Ahuja, Advocate for the appellant. *** SANDEEP MOUDGIL, J The appellant has challenged the order dated 07.12.2021, passed by the learned Single Judge, vide which the 13051 of 2020 filed by the petitioner, appellant herein, was dismissed holding that the Award dated 30.12.2017 (Annexure P2) came into existence after the petitioner had duly participated in the Arbitration proceedings and thereafter he was entitled to raise objections under Section 19 of the Micro Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as 'MSMED Act') read with Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as Act of 1996). Learned Single Bench has returned the finding that the petitioner failed to avail the remedy under the aforesaid Act and ventured filing of 1 of 8 ::: Downloaded on 24042022 22:50:48 ::: LPA NO.63 OF 2022(O&M) 2 submission with regard to chances of amicable resolution of the dispute. The factual dispute leading to the filing of intra court appeal arises from an agreement dated 24.08.2008 between the petitioner Government of India Undertaking and M/s Siemen Laboratories India, Gurugramrespondent no.3. It was on account of reports of the State Drugs Controller Licensing Authority, Panchkula for poor quality of medicines, the supply from respondent no.3 was stopped. According to the report dated 08.01.2016, a sum of Rs.17,99,833/ (Rupees Seventeen lacs Ninty Nine Thousand Eight Hundred and Thirty Three only) was found to be still pending, however, the petitionerappellant claimed to have deposited Rs.2,50,000/ (Rupees Two Lacs Fifty Thousand only) to respondent no.3, vide cheque dated 22.02.2016, out of net payable amount of Rs.3,74,000/ (Three Lacs Seventy Four Thousand only), the aforesaid amount has been calculated by the appellantpetitioner by deducting the amount of Rs.14,75,000/ (Rs. Fourteen Lacs Seventy Five Thousand only) as costs of expired veterinary stock and allopathic medicines. It is, in this background, the respondent no.3Company raised a claim, before the Micro and Small Enterprises Facilitation Council (hereinafter referred to as 'Council'), amounting to a sum of Rs.20,22,763.42/ (Rupees Twenty Lacs Twenty Two Thousand Seven Hundred Sixty Three and Forty Two Paise only) as principle amount, apart from Rs.1,75,22,908/ (Rupees One Crore Seventy Five Lacs Twenty Two Thousand Nine Hundred and Eight only) towards interest making it a total of Rs.1,95,45,671/ (Rupees One Crore Ninty Five Lakh Forty Five Thousand 2 of 8 ::: Downloaded on 24042022 22:50:48 ::: LPA NO.63 OF 2022(O&M) 3 Six Hundred and Seventy One only). On notice to the petitionerappellant, a reply was filed controverting the claim raised by respondent no.3Company. After the efforts for settlement had failed, the Councilrespondent no.1 had dropped the reference and referred the parties to the Arbitrator. The claim was accepted by the Arbitrator vide its Award dated 30.12.2017 (Annexure P2) to the tune of Rs.18,45,264/ (Rupees Eighteen Lacs Forty Five Thousand Two Hundred and Sixty Four only) with interest ranging between at the rate of 18.75% to 30.75% with monthly rests in terms of Section 16 of the MSMED Act and directed the petitionerCompany to pay a sum of Rs.1,80,42,168/ (Rupees One Crore Eighty Lacs Forty Two Thousand One Hundred and Sixty Eight only). The appeal preferred by the petitionerappellant under Section 19 of the Act of 2006 read with Section 34 of the Act of 1996 was dismissed being barred by limitation vide order dated 14.02.2019 (Annexure P3). It was after the aforesaid dismissal of appeal, the petitioner company received the summons (Annexure P14) from the Executing Court to implement the decree. It is again the aforesaid Award dated 30.12.2017 (Annexure P2), order