Karnataka High Court M/S Kirloskar Electric Co Ltd vs The Karnataka Micro & Small Enterprises on 11 June, 2024 1 NC: 2024:KHC:20689 WP No. 2616 of 2017 DATED THIS THE 11TH DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 2616 OF 2017 (GMRES) BETWEEN: M/S KIRLOSKAR ELECTRIC CO LTD A COMPANY REGISTERED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT POST BOX 5555 MALLESWARAM WEST BENGALURU560055 REPRESENTED BY ITS ASSOCIATE VICE PRESIDENTLEGAL MR.CHINMOY PATNAIK ...PETITIONER (BY SRI. K V SATISH.,ADVOCATE) Digitally signed by R HEMALATHA Location: HIGH AND: COURT OF KARNATAKA 1. THE KARNATAKA MICRO & SMALL ENTERPRISES FACILITATION COUNCIL BANGALORE NO.49, 2ND FLOOR, SOUTH BLOCK, KHANIJA BHAVAN, RACE COURSE ROAD BANGALORE560 001 REPRESENTED BY ITS 2 NC: 2024:KHC:20689 WP No. 2616 of 2017 ADDITIONAL DIRECTOR (MSME) 2. S.P.TECH HAVING THEIR OFFICE NO.138/1, BLOCK FIRST KADANAGERE CROSS, MACHOHALLI VILLAGE, BENGALURU560 091 ...RESPONDENTS (BY SRI. M N MADHUSUDHAN FOR R1 AND R2.,ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DTD.19.1.2016 ISSUED BY THE R1 VIDE ANENXC ORDER DTD.11.7.2016 PASSED BY THE R1 VIDE ANNEXE AND AWARD DTD.10.8.2016 PASSED IN CASE NO.34/2015 BY THE R1 VIDE ANNEXG AND INITIMATION OF THE FURTHER PROCEEDINGS PURSUANT TO THE NOTICE. THIS PETITION, COMING ON FOR PRELIMINARY HEARING 'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has called in question the notice dated 19.01.2016 issued by respondent No.1, the order dated 11.07.2016 passed by respondent No.1 and the order dated 10.08.2016 passed by respondent No.1 calling upon the petitioner to pay a sum of Rs.28,05,360/ towards principal for having supplied the materials to the petitioner. The petitioner is further directed to pay interest at three times of the bank rates prescribed by the Reserved Bank of India from the due date as per Section 16 of the Micro, Small and Medium Enterprises Development Act (MSMED), 2006 (for short 'the Act 2006'). 3 NC: 2024:KHC:20689 WP No. 2616 of 2017 2. The present petition has been filed primarily contending that the provisions of the Act, 2006 is not applicable since the respondentCompany was registered under the Act, 2006 only after the supply of the material to the petitioner. Upon suggestion made by this Court, the petitioner and respondent No.2 have amicably resolved the dispute among themselves and in terms of the settlement, the petitioner has agreed to pay a sum of Rs.14,05,000/ to respondent No.2 in full and final settlement of his claim in addition to Rs.14,59,780/ already paid in light of the interim order passed by this Court. 3. The petitioner has filed an affidavit stating that a cheque dated 10.06.2024 for a sum of Rs.4,50,000/ is drawn in favour of respondent No.2 and the same is handed over to respondent No.2 which is duly acknowledged subject to realization and balance of Rs.9,05,000/ will be paid in two installments i.e, Rs.5,00,000/ and Rs.4,05,000/ on or before 16.07.2024 and 16.08.2024 respectively by way of RTGS. 4. The affidavit is placed on record. 5. Accordingly, petition stands disposed of in terms of the settlement. Sd/ JUDGE RKA List No.: 1 Sl No.: