Andhra Pradesh High Court Amravati M/S. Dalapathi Constructions, vs The State Of Andhra Pradesh, on 5 August, 2022 *** W.P.No.4652 of 2022 Between: # M/s. Dalapathi Constructions, Rep. by its Partner Mr. Dalapathirao Venkata Nagaraju # 1311, Near ZPH School, Vuyyuru, Krishna Ditrict, AP 521165 ... Petitioner AND $ 1. The State of Andhra Pradesh, rep. by its Special Chief Secretary, Industries and Commerce (Micro and Small Enterprises Department (MSME), Secretariat, Velagapudi, Amaravathi. 2. The Micro and Small Enterprises Facilitation Council (MSEFC), Andhra Pradesh Rep. by its Chairman, 1st Floor, Commissioner of Industries, Mutyalampadu, Satyanarayanapuram, Vijayawada, Andhra Pradesh. 3. M/s. Undavalli Constructions, rep. by its Managing Partner Mr. Undavalli Ramu, H.No.24H104/1, Undavalli Residency, Ashok Nagar, Eluru, A.P. 534002. ... RESPONDENTS Date of Judgment pronounced on : 05.08.2022 HON'BLE SRI JUSTICE R. RAGHUNANDAN RAO 1. Whether Reporters of Local newspapers : Yes/No May be allowed to see the judgments? 2. Whether the copies of judgment may be marked : Yes/No to Law Reporters/Journals: 3. Whether The Lordship wishes to see the fair copy : Yes/No Of the Judgment? 2 RRR,J W.P.No.4652 of 2022 * *HONOURABLE SRI JUSTICE R. RAGHUNANDAN RAO + W.P.No.4652 of 2022 % Dated:05.08.2022 Between: # M/s. Dalapathi Constructions, Rep. by its Partner Mr. Dalapathirao Venkata Nagaraju # 1311, Near ZPH School, Vuyyuru, Krishna Ditrict, AP 521165 ... Petitioner AND $ 1. The State of Andhra Pradesh, rep. by its Special Chief Secretary, Industries and Commerce (Micro and Small Enterprises Department (MSME), Secretariat, Velagapudi, Amaravathi. 2. The Micro and Small Enterprises Facilitation Council (MSEFC), Andhra Pradesh Rep. by its Chairman, 1st Floor, Commissioner of Industries, Mutyalampadu, Satyanarayanapuram, Vijayawada, Andhra Pradesh. 3. M/s. Undavalli Constructions, rep. by its Managing Partner Mr. Undavalli Ramu, H.No.24H104/1, Undavalli Residency, Ashok Nagar, Eluru, A.P. 534002. ... RESPONDENTS ! Counsel for Petitioner : Sri S. Ram Babu ^Counsel for Respondent No.1 : G.P. for Industries. ^Counsel for Respondent No.3 : Sri Ashok Returi <GIST : >HEAD NOTE: ? Cases referred: 1. (2019) SCC Online Bom 340 2. AIR 2004 SC 1766 3 RRR,J W.P.No.4652 of 2022 HON'BLE SRI JUSTICE R. RAGHUNANDAN RAO W.P.No.4652 of 2022 ORDER: The case of the petitioner is as follows: The petitioner, who is a partnership firm, is in the business of Civil Constructions in 2014. The petitioner had registered itself as an Enterprise under the Micro, Small and Medium Development Enterprises Act, 2006, (for short „the Act‟) on 28.11.2020. 2. The petitioner had entered into a contract with the 3rd respondent on 14.06.2018 for undertaking construction in a multi storeyed residential complex, viz., "Srivalli Pravas" at Kaja, Guntur District. However, the said contract could not be executed. As the petitioner had already stationed sizeable plant and machinery at the site, a further agreement, termed as a Memorandum of Understanding, was entered between the petitioner and the 3rd respondent on 20.05.2020. As per this Memorandum of Understanding, the 3rd respondent had agreed to pay a sum of Rs.253 lakhs + GST to the petitioner as consideration for the plant and machinery handed over to the 3rd respondent. 3. The 3rd respondent did not make the payment due to the petitioner. Therefore, the petitioner approached the 2nd respondent Facilitation Council, under the provisions of the Act for recovery of its dues. This application was rejected by the 2nd respondent in the meeting held on 22.06.2021 and the said decision was communicated to the petitioner by letter bearing Reference No.21C/IFC 2021/427 dated 23.09.2021. The endorsement in the said letter is as follows: "As per the Udyam re