In Brief
Jharkhand Urja Vikas Nigam Limited contracted with Anamika Conductors Ltd. for conductor supplies. When payment was delayed, Anamika approached the Rajasthan Micro and Small Enterprises Facilitation Council seeking dues plus interest. The Council passed an order directing payment after the company failed to appear at a conciliation hearing, without initiating formal arbitration. The Court held that the order was a nullity: the Council must first conduct conciliation, then if unsuccessful, formally initiate arbitration under the Arbitration and Conciliation Act, 1996. These are distinct processes and cannot be conflated. The order violated mandatory procedural requirements and could be challenged by writ petition. The appeal was allowed and the matter remitted for proper arbitration.
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