Gauhati High Court Page No.# 1/7 vs The State Of Assam And 4 Ors on 9 September, 2025 Page No.# 1/7 GAHC010175402023 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/4631/2023 GARG POLY INDUSTRIES AND ANR. A REGISTERED PROPRIETORIAL FIRM HAVING ITS REGISTERED OFFICE AT S C ROAD ATHGAON GUWAHATI 781001 2: BABITA GARG PROPRIETOR OF GARG POLY INDUSTRIES R/O NEHA APARTMENT ATHGAON GUWAHATI 78100 VERSUS THE STATE OF ASSAM AND 4 ORS. REP. BY THE SECRETARY TO THE GOVT. OF ASSAM PUBLIC HEALTH ENGINEERING DEPTT. DISPUR GUWAHATI 781003 2:THE PRINCIPAL SECRETARY GOVT. OF ASSAM FINANCE DEPTT. DISPUR GUWAHATI 781003 3:THE CHIEF ENGINEER PUBLIC HEALTH ENGINEERING DEPTT. GOVT. OF ASSAM HENGRABARI GUWAHATI 781003 4:THE ADDITIONAL CHIEF ENGINEER PUBLIC HEALTH ENGINEERING DEPTT O/O THE ENGINEER PUBLIC HEALTH ENGINEERING DEPTT HENGRABARI GUWAHATI 5:THE EXECUTIVE ENGINEER PHE STORES AND WORKSHOP DIVISION BETKUCHI GUWAHAT Advocate for the Petitioner : MS M HAZARIKA, MR D KHAN Advocate for the Respondent : SC, P H E, SC, FINANCE Page No.# 2/7 Linked Case : WP(C)/5273/2023 SRK METALS AND PLASTICS PVT. LTD. REPRESENTED BY ITS DIRECTOR SHRI KRISHNA AGARWAL A PRIVATE LIMITED COMPANY REGISTERED UNDER THE COMPANIES ACT HAVING ITS REGISTERED OFFICE AND FACTORY AT VILLAGE BONDA P.O BONDA P.S PRAGJYOTISHPUR GUWAHATI 781026 DISTRICT KAMRUP METRO ASSAM VERSUS THE STATE OF ASSAM AND 4 ORS. REPRESENTED BY THE SECRETARY TO THE GOVERNMENT OF ASSAM PUBLIC HEALTH ENGINEERING DEPARTMENT DISPUR GUWAHATI 781003 2:PRINCIPAL SECRETARY GOVERNMENT OF ASSAM FINANCE DEPARTMENT DISPUR GUWAHATRI 781003 3:THE CHIEF ENGINEER PUBLIC HEALTH ENGINEERING DEPARTMENT GOVERNMENT OF ASSAM HENGARABARI GUWAHATI 781003 4:THE ADDITIONAL CHIEF ENGINEER PUBLIC HEALTH ENGINEERING DEPARTMENT OFFICE OF THE CHIEF ENGINEER PUBLIC HEALTH ENGINEERING DEPARTMENT HENGARABARI GUWAHATI. 5:THE EXECUTIVE ENGINEER PHE STORES AND WORKSHOP DIVISION BETKUCHI GUWAHATI. Page No.# 3/7 Advocate for : MS K LOYA Advocate for : SC FINANCE appearing for THE STATE OF ASSAM AND 4 ORS. Linked Case : WP(C)/5966/2023 KAMAKHYA POLY UDYOG AND ANR. A REGISTERED PROPRIETORIAL FIRM HAVING ITS REGISTERED OFFICE AT S.C. ROAD ATHGAON GUWAHATI781001. 2: MANOJ GARG PROPRIETOR OF KAMAKHYA POLY UDYOG RESIDENT OF NEHA APARTMENT ATHGAON GUWAHATI781001. VERSUS THE STATE OF ASSAM AND 4 ORS. REPRESENTED BY THE SECRETARY TO THE GOVERNMENT OF ASSAM PUBLIC HEALTH ENGINEERING DEPARTMENT DISPUR GHY781003. 2:PRINCIPAL SECRETARY GOVERNMENT OF ASSAM FINANCE DEPARTMENT DISPUR GUWAHATI781003. 3:THE CHIEF ENGINEER PUBLIC HEALTH ENGINEERING DEPARTMENT GOVERNMENT OF ASSAM HENGRABARI GUWAHATI781003. 4:THE ADDITIONAL CHIEF ENGINEER PUBLIC HEALTH ENGINEERING DEPARTMENT OFFICE OF THE CHIEF ENGINEER PUBLIC HEALTH ENGINEERING DEPARTMENT HENGRABARI GUWAHATI. Page No.# 4/7 5:THE EXECUTIVE ENGINEER PHE STORES AND WORKSHOP DIVISION BETKUCHI GUWAHATI. Advocate for the petitioner(s): Ms. M Hazarika, Senior Advocate Mr. D Khan Advocate for the respondent(s): Mr. I Borthakur Standing Counsel, PHED BEFORE HON'BLE MR. JUSTICE DEVASHIS BARUAH ORDER 09.09.2025 This Court had duly heard the learned counsels appearing on behalf of the parties. 2. From the materials on record, it transpires that the impugned speaking order by which the petitioners' entitlement towards interest in terms with Section 16 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 (for short, the MSMED Act of 2006) had been denied appears to be prima facie not tenable. The reasons being that the Memorandum of Understanding dated 14.05.2019 would have no application in respect to the payment due by the PHE Department inasmuch as, the Memorandum of Understanding dated 14.05.2019 relates only to the Central Government share. The Page No.# 5/7 speaking order further bases its decision on the question that it could not be ascertained as to whether the petitioners would be small enterprise. But the materials on record clearly show that the said d