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10-10-2026     3 رجب 1440

HC upholds MSME arbitration awards, dismisses 3 petitions

October 10, 2026 | BK NEWS SERVICE

Srinagar, Oct 9: The Jammu and Kashmir and Ladakh High Court has dismissed three revision petitions filed by Kashmir Confectionary Store, Mehak Trading Co. and Naugraein Traders, upholding orders permitting the execution of arbitration awards in favour of Mother Choice Health Care India over unpaid dues for supplied goods.

Justice Sanjay Dhar, in an order dated September 30, 2026, held that the petitioners had failed to establish any legal ground to interfere with the orders passed by the Principal District Judge, Jammu, on July 20, 2026.
The petitioners had challenged the arbitration awards, arguing that Mother Choice Health Care India was not registered under the Micro, Small and Medium Enterprises Development Act, 2006, when the supplies were made in 2014–15. They also questioned the jurisdiction of the Himachal Pradesh Micro and Small Enterprises Facilitation Council, Shimla, to refer the disputes for arbitration.
Rejecting the objections, the High Court noted that the respondent had produced an Udyog Aadhaar Memorandum certificate showing MSME registration with effect from April 1, 2010. The court observed that the enterprise had re-registered in 2020 following a Ministry of MSME notification dated June 26 that year, and the petitioners appeared to have mistaken the subsequent registration for its initial registration.
Justice Dhar further held that even if the enterprise had not been registered under the MSME Act at the relevant time, that fact alone would not invalidate the arbitration awards.
The court relied on the Supreme Court's judgment in NBCC (India) Ltd. v. State of West Bengal and others (2025 INSC 54), which examined the jurisdiction of Micro and Small Enterprises Facilitation Councils under Section 18 of the MSME Act in disputes involving enterprises not registered under Section 8.
The dispute arose from three separate supply transactions for which Mother Choice Health Care India sought recovery of outstanding payments. After conciliation failed, the Facilitation Council referred the matters to arbitration under Section 18(3) of the Act. The arbitrator subsequently issued three awards, two dated October 19, 2023, and one dated April 22, 2023.
Execution proceedings initiated before the District Judge, Solan, in Himachal Pradesh were later transferred to Jammu. The three firms challenged the proceedings through applications under Sections 47 and 151 of the Code of Civil Procedure, which were dismissed by the Principal District Judge, Jammu.
Finding no legal basis to overturn the lower court's decisions, Justice Dhar dismissed all three revision petitions as devoid of merit, allowing the execution of the arbitration awards to proceed.

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HC upholds MSME arbitration awards, dismisses 3 petitions

October 10, 2026 | BK NEWS SERVICE

Srinagar, Oct 9: The Jammu and Kashmir and Ladakh High Court has dismissed three revision petitions filed by Kashmir Confectionary Store, Mehak Trading Co. and Naugraein Traders, upholding orders permitting the execution of arbitration awards in favour of Mother Choice Health Care India over unpaid dues for supplied goods.

Justice Sanjay Dhar, in an order dated September 30, 2026, held that the petitioners had failed to establish any legal ground to interfere with the orders passed by the Principal District Judge, Jammu, on July 20, 2026.
The petitioners had challenged the arbitration awards, arguing that Mother Choice Health Care India was not registered under the Micro, Small and Medium Enterprises Development Act, 2006, when the supplies were made in 2014–15. They also questioned the jurisdiction of the Himachal Pradesh Micro and Small Enterprises Facilitation Council, Shimla, to refer the disputes for arbitration.
Rejecting the objections, the High Court noted that the respondent had produced an Udyog Aadhaar Memorandum certificate showing MSME registration with effect from April 1, 2010. The court observed that the enterprise had re-registered in 2020 following a Ministry of MSME notification dated June 26 that year, and the petitioners appeared to have mistaken the subsequent registration for its initial registration.
Justice Dhar further held that even if the enterprise had not been registered under the MSME Act at the relevant time, that fact alone would not invalidate the arbitration awards.
The court relied on the Supreme Court's judgment in NBCC (India) Ltd. v. State of West Bengal and others (2025 INSC 54), which examined the jurisdiction of Micro and Small Enterprises Facilitation Councils under Section 18 of the MSME Act in disputes involving enterprises not registered under Section 8.
The dispute arose from three separate supply transactions for which Mother Choice Health Care India sought recovery of outstanding payments. After conciliation failed, the Facilitation Council referred the matters to arbitration under Section 18(3) of the Act. The arbitrator subsequently issued three awards, two dated October 19, 2023, and one dated April 22, 2023.
Execution proceedings initiated before the District Judge, Solan, in Himachal Pradesh were later transferred to Jammu. The three firms challenged the proceedings through applications under Sections 47 and 151 of the Code of Civil Procedure, which were dismissed by the Principal District Judge, Jammu.
Finding no legal basis to overturn the lower court's decisions, Justice Dhar dismissed all three revision petitions as devoid of merit, allowing the execution of the arbitration awards to proceed.


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