Jammu & Kashmir High Court Srinagar Bench Union Territory Of J&K And vs Zain Steel Engineering Works on 3 May, 2024 HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR CM(M) No. 320/2023 c/w CM(M) No. 322/2023 Pronounced on: 03.05.2024 Union Territory of J&K and .... Petitioner/Appellant(s) another Through: Mr. Ilyas Nazir Laway, GA Mr. Fayeem Nisar Shah, GA V/s Zain Steel Engineering Works .....Respondent(s) Through: Mr.Azhar ul Amin, Advocate CORAM : HON'BLE MRS. JUSTICE SINDHU SHARMA, JUDGE JUDGMENT 01. Petitioners, in these two petitions seek quashing of award Nos. MSEFCK/18 of 2021 and MSEFCK/23 of 2021 dated 20.04.2021, passed by Secretary, Micro and Small Enterprises Facilitation Council (MSEFC)Kashmir Division, Srinagarin cases titled 'InnayatullahKhateeb, M/s Zain Steel Engineering Works I/E Barzulla, Sanat Nagar Budgam vs. Executive Engineer Electric Division Special SubDivision Tangmarg' and 'M/s Indian Steel and Metal Industries vs. Executive Engineer Electric Division Awantipora'and alsoorder dated 13.06.2023, passed by the Court of Additional District Judge (Bank Cases) Srinagar in cases titled 'Zain Steel Engineering Works vs. Chief Engineer M& RE Wing &anr.' and 'M/s Indian Steel and Metal Industries vs. Chief Engineer M& RE Wing &anr.' 02. The relevant facts as stated in the petitions are that M/S Zain Steel Engineering Works filed an application before Micro and Small Enterprises 2 CM(M) No. 320/2023 c/w CM(M) No. 322/2023 Facilitation Council under the provisions of MSME Act, 2006 regarding the delayed payment to them under the provisions of Section 18(1) of the Delayed Payment. The respondents claimed to have supplied the goods/services rendered to Assistant Executive Engineer as per their Work order/Agreement 16061/SSDT, SSDT/3014 dated 06.05.2016, 10.11.2018 and that the goods/services rendered by M/s Inayatullah Khateeb to Assistant Executive Engineer and Invoice No. 11, 608 dated 23.05.2016, 12.11.2018 generated and made available by the supplier to the buyer. The petitioner failed to make payment to the supplier within 45 days from the day of acceptance. 03. The Council on 08.07.2020, advised the petitioner to pay the due amount of Rs. 10,96,700/ within 15 days of receipt of notice failing which the case would be registered by MSEFC Srinagar. Thereafter, the petitioner received a communication on 17.08.2020 of reference regarding delayed payment. The reference along with supporting documents were forwarded to the petitioner for authentication and also to furnish details within a period of seven days. Thereafter, the petitioner received an order dated 27.08.2020 from Secretary MSEFC (Joint Director I&C) Kashmir for mutual settlement under conciliation provisions of Micro Small and Medium Enterprise Development Act 2006. The petitioner received another order dated 17.11.2020 from Secretary MSEFC for mutual settlement under conciliation provisions of Section 18(2) of MSME Act. The Secretary MSEFC on 20.04.2021, passed an award of Rs. 10,20,700/ along with compound interest and the Executing Court vide the impugned order has attached all the accounts operated by the petitioner except salary 3 CM(M) No. 320/2023 c/w CM(M) No. 322/2023 account. 04. M/S Indian Steel and Metal Industries in CM(M) No. 322/2023 also approached the Micro and Small Enterprises Facilitation Council Kashmir regarding recovery of payment for delayed payment of goods supplied/services rendered by virtue of work order SICOP/MM/18 19/480/137577 dated 27.10.2018 and SICOP/MM/1819/479/137880 dated 27.10.2018, and invoice No. SICOP/788 and SICOP/803 dated 27.12.2018 and 31.12.2018 for an amount of Rs. 71,91,902/. 05. MSEFC vide its communication dated 06.07.2020, on the reference regarding delayed payment directed the petitioners to release the delayed payment in favour of MSME (the supplier) and furnish the details in this regard. The Secretary, MSME passed an order dated 17.11.2020 for mutual settlement under the conciliation proceedings under Section 18(2) of the Act. It is submitted that there was no further communication between the parties till the award on 20.04.2021 was passed by the Secretary, MSEFC for an amount of Rs. 71,91,902/ along with compound