Allahabad High Court Marsons Electrical Industries vs Chairman, Madhya Pradesh Electricity ... on 12 December, 2023 HIGH COURT OF JUDICATURE AT ALLAHABAD Neutral Citation No. 2023:AHC:235589DB AFR Reserved on : 28.11. 2023 Delivered on : 12.12.2023 Court No. 40 Case : APPEAL UNDER SECTION 37 OF ARBITRATION AND CONCILIATION ACT 1996 No. 701 of 2023 Appellant : Marsons Electrical Industries Respondent : Chairman, Madhya Pradesh Electricity Board (Madhya Pradesh State Electricity Board) And Another Counsel for Petitioner : Alok Kumar Yadav Counsel for Respondent : Varun Srivastava Hon'ble Mahesh Chandra Tripathi,J. Hon'ble Prashant Kumar,J. (Delivered by M.C. Tripathi, J.) 1. Heard Sri Alok Kumar Yadav and Sri Shantanu Srivastava, learned counsel for the appellant and Sri Aditya Khandekar, Advocate along with Sri Varun Srivastava, learned counsel for the respondent. FACTUAL MARTIX OF THIS CASE 2. The appellant was engaged in the business of manufacturing transformers of various capacities. The appellant initially was a Proprietorship Firm known as MEI Power Private Limited. However, it was registered as a Private Limited Company with the name of Marsons Electrical Industries but it is now changed to MEI Power Private Limited. 3. The appellant has set up a small scale manufacturing industry in Agra and the same was acknowledged by the Director of Industries as the "small scale industry" and a certificate to that effect was also issued on 9.2.1971. This certification was given under the provisions of the Industrial Development and Regulation Act, 1951. The appellant claims that he has been working as small scale industry since then. 4. The Parliament in its wisdom in the year 1993 had promulgated an Act called 'Interest on Delayed Payments to Small Scale and Ancillary Undertakings Act, 1993' (hereinafter referred to as '1993 Act'). This Act was later on repealed and a new Act known as 'Small Scale Industries Act, 2006' was promulgated in the year 2006. 5. The appellant, who already had a certificate of a small scale industry and was running since 1971 as a small scale industry, after the promulgation of the new Act, applied for certificate, which was issued to the appellant on 29.10.2007 as per the provisions of Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as 'MSMED Act, 2006'). The appellant submitted that the certificate issued in 2006 was actually a continuation of the certificate issued in 1971. Later, the Central Government again modified the rule for small scale industries and all the small scale industries registered under the 2006 Act were supposed to get a Udyog Adhaar Number. The appellant applied for the same and a fresh Udyog Adhaar Number was issued on 10.5.2016. This Udyog Adhaar Certificate clearly showed that it was in continuation of the original certificate of Small Scale Industry, which was issued to the appellant on 9.2.1971. 6. A contract was entered into between appellant and the respondent, M.P. State Electricity Board. Thereafter, various work orders had been issued to the appellant for supply of transformers. The details of the work orders are as follows: S.No. Dates Work Order Numbers 1. 14101993 0601/Ord/14998 2. 03031994 Extn. Order No.0601/CE(S & P)/SE(PI)/EE(PII)/15240 3. 10021995 0601/CE(S & P)/SEPI/EEPII/15719 Extn.15837 4. 11011996 Extn. Order No.0601/CE(S & P)/ORD/SEPI/EEPII)/16266 5. 27061996 0601/CE(S&P)/ORD/SEPI/EEPIII/16482 6. 10091996 0601/CE(S&P)/ORD/SEPI/EEPIII/ExtnI/16551 7. 13091996 0601/CE(S&P)/ORD/SE(PI)/EE(PII)/Extn.116575 8. 03121998 0601/CE(S&P)/ORD/SE(PIV)/EE(PII)/17723 9. 10111997 0601/CE(S&P)/ORD/SEPI/EEPIII)/Extn.I/17094 10. 03071998 0601/CE(S&P)/ORD/SEPI/EEPIII)/ExtnII/17514 11. 22081997 0601/CE(S&P)/SE(PIV)/ORD/SE(PI)/EE(PII)/16957 12. 29061998 601/CE(S&P)/SE(PIV)/EE(PII)/17458 7. The relevant clauses of the contract are being reproduced hereinunder for ready reference: Clause 8 laid down the mode of payment, which reads as under: "8. TERMS OF PAYMENT: 8.1 The supplier shall forward the original RR/MTR and Excise gate pass directly to consignee alongwith copies of following documents: (i) A copy of bill (ii) Delivery challan (iii) Original copy of excise duty gate pass alongwith photocopy (iv) The inspection and or T.C. approval (v) Detailed packing list 8.2 The original bills should be forwarded to the paying authority and should be marked "ORIGINAL". The bill should indicate the Sales Tax Registration Certificate Number and date allotted to him under the Sales Tax Act. 8.3 The following documents will have to be forwarded to the paying authority alongwith bills in triplicate: (i) Bill/