Jammu & Kashmir High Court Srinagar Bench Union Territory Of J&K Through vs M/S Jtl Infra Limited on 21 April, 2025 AT SRINAGAR Reserved on: 15.04.2025 Pronounced on: 21.04.2025 WP(C) 2673/2024, CM 583/2025 CM 7273/2024 Union Territory of J&K through ...Petitioner(s)/Appellant(s) Executive Engineer, PHE M&P Division, Having its registered office at 1 HMT Zanikote Srinagar J&K 190012 Through: Mr. Abdul Rashid Malik, Sr. AAG & Mr. Mohammad Younis, Assisting Counsel Vs 1. M/S JTL Infra Limited ...Respondent(s) Through its Managing Director Sh. Rakesh Garg having its registered address at Gholu Majra Derbasi Ambala Highway Derabassi Mohali Punjab 2. Micro & Small Enterprises Facilitation Council (MSEFC) SAS Nagar Mohali Punjab through its Chairman Through: Mr. Jahangir Iqbal Ganai, Sr. Advocate with Ms. Mehnaz Rather, Advocate HON'BLE MS JUSTICE MOKSHA KHAJURIA KAZMI, JUDGE JUDGMENT 1. Petitioner Union Territory of J&K through Executive Engineer, PHE M&P Division, has assailed the award/order dated 01.06.2023, passed by Chairman, Micro and Small Enterprises Facilitation Council [hereinafter be referred as "MSEFC"], SAS Nagar Punjab, in terms of which respondent No. 1 has been held entitled to the payment of Rs. 2,75,65, 355.00/ as principal amount along with interest as delayed amount up to 31.05.2023. Factual Matrix 2. The Jal Shakti Department invited tenders for bidding for supply of ISI marked GMS tubes of assorted sizes, ranging from 15 MM to 100 MM, 2 125MM and 150 MM from registered/GeM approved manufacturers vide eNIT No. PHE/M&P/01 of 201819/etender dated 06042018. Out of six bidders, the firm M/S JTL Infra Limited, Chandigarh was declared lowest for all the items of the advertised diameters in both light and medium class categories as such three supply orders were issued in favour of the claimant firm. The material from the firm i.e., respondent No.1 was received as and when supplied as per the supply orders and payments were made to the firm from time to time as per the payment clauses of the terms and conditions of the ENIT. 3. It is stated that the delay of finalization/closure of the contract for supply of GMS Tubes from respondent No. 1 to the Department of Jal Shakti had occurred, owing the delay in supplies from the Firm itself, which consequently impeded the settlement of delay. 4. It is stated that once the settlement of delay was confirmed, firm and final rates were established and after imposition of penalty clause net amount payable to the firm and the payment was made as per the terms and conditions laid in ENIT. Respondent No. 1 filed a claim petition/reference under Section 18 of the Micro Small and Medium Enterprises Development Act, 2006 for recovery of Rs. 19,38,92,339/, which includes Rs. 16,89,79,714.26/ as principal amount and Rs. 2,49,12,624.74/ as interest upto 31.12.2019, before the Punjab Micro and Small Enterprises Facilitation Council at S.A.S Nagar Mohali. 5. The Chairman Micro and Small Enterprises Facilitation Council, SAS Nagar passed award dated 01.06.2023, the operative portion of which is reproduced as under: "Therefore in view of the findings above, the claimant is held entitled to the payment of Rs. 2,75,65.355.00/ as principal alongwith interest as delayed payment upto 31.05.2023. The reference of the claimant is accepted not only for the pending principal amount as stated above, but also with interest there upon as per provisions of Section 16 of MSMED Act, 2006 and an award of pending principal amount of Rs. 2,75,65,355.00/ alongwith interest of Rs. 8,77,32,279.00/ upto 20.04.2023 (Total WP(C) No. 2673/2024 3 amounting to Rs. 11,52,97,635.00/) as per Calculation Sheet attached as Annexure A1 is hereby passed in favour of the claimant and against the respondent, who is liable to pay the same to claimant. The respondent shall be