1. The Micro & Small Enterprises Facilitation Council, Kashmir Division, Srinagar. 2. M/S JK Technos Industrial Complex Khunmoh, Through its Representative Mr. Shabir Ahmad Bhat S/O Mohammad Abdullah Bhat R/O B.K Pora Nowgam, Srinagar. ...Respondent(s) Through: Mr. Arif Sikander Mir, Advocate Mr. MehrajudDin Bhat, Advocate HON'BLE MR. JUSTICE WASIM SADIQ NARGAL, JUDGE. JUDGMENT 1. 1) This Writ Petition under Article 226 of the Constitution of India has been filed by the Petitioners, the Union Territory of Jammu & Kashmir and the Executive Engineer, Lake Division, challenging the arbitral award dated 16.01.2023 passed by the Micro and Small Enterprises Facilitation Council (MSEFC), Kashmir Division, under Section 18(3) of the Micro, Small and Medium Enterprises Page 2 of 32 WP(C) No.1040/2024 Development Act, 2006 (MSMED Act). The award was passed in favor of Respondent No. 2, M/s JK Technos, directing the Petitioners to pay Rs.58,56,823/ along with compound interest at 19.50% per annum from 18.06.2019 until payment. The Petitioners seek to set aside the said award, while Respondent No. 2 has raised preliminary objections regarding the maintainability of the Writ Petition. 2) Recital of Facts: On 30.03.2018 and 05.10.2018, the Executive Engineer, Lake Division, J&K Lakes and Waterways Development Authority (LAWDA), issued work orders to the Divisional Manager, SICOP, for the supply of 5,000 and 650 RCC spun pipes, respectively. These orders were subsequently assigned to Respondent No. 2, M/s JK Technos, vide supply orders dated 03.05.2018 and 09.10.2018. 3) Respondent No. 2 supplied the RCC spun pipes as per the work orders and raised bills for payment. However, the Petitioners failed to make the payments. 4) On 04.12.2019, the Deputy General Manager, SICOP, requested the Executive Engineer to transfer Rs.61,37,430/ to J&K Small Scale Industries Development Corporation Limited for onward release to Respondent No. 2, but the payment remained outstanding. 5) Respondent No. 2 approached the MSEFC under Section 18(1) of the MSMED Act, seeking redressal for delayed payments. The MSEFC issued a notice to the Petitioners on 05.06.2021, advising them to clear the dues within 15 days, failing which the matter would proceed to conciliation and arbitration. Page 3 of 32 WP(C) No.1040/2024 6) The Petitioners did not participate in the conciliation proceedings under Section 18(2), leading the MSEFC to initiate arbitration proceedings under Section 18(3). On 16.01.2023, the MSEFC passed an arbitral award in favor of Respondent No. 2. 7) The Petitioners did not challenge the award within the statutory period under Section 34 of the Arbitration and Conciliation Act, 1996. Instead, Respondent No. 2 filed an execution petition before the Additional District Judge (Bank Cases), Srinagar, a designated commercial court. The Petitioners deposited Rs.1,09,34,514.96/ before the executing court, of which Rs.76,17,037.79/ was released to Respondent No. 2. 8) On 03.06.2024, approximately 18 months after the award, the Petitioners filed the present Writ Petition, relying on a judgment of this Court in U.T. of J&K & Ors. v. Alihak Electric Industries (14.12.2023), which set aside an award under Section 18(3) of the MSMED Act. This Court stayed the impugned award vide order dated 20.05.2024. SUBMISSIONS ON BEHALF OF THE PETITIONERS: 9) Mr. Ilyas Na