Calcutta High Court Grants Unconditional Stay Of MSME Council Award Due To Concerns Over Violation Of Natural Justice

The High Court at Calcutta has granted an interim Order of unconditional stay on the execution of an Arbitration Award passed by the MSME Facilitation Council at Konkan.

In an Application filed under Section 36 (2) of the Arbitration and Conciliation Act, 1996 by Bridge and Roof Company (India) Ltd, against M/s FEPL Engineering Pvt. Ltd, praying for unconditional stay with exemption from pre-deposition/putting security for such unconditional stay, Justice Shampa Sarkar prima facie observed, that the Award was passed by four members although the MSME Facilitation Council at Konkan comprised of five members as per Notification of the Industries Energy and Labour Department, Mumbai.

It was also observed that the document on the basis of which the Award was passed was filed at the end of proceedings as part of the written notes of argument.

Arguments for unconditional stay of the Arbitration Award were advanced by Ms. Vineeta Meharia, Barrister & Senior Counsel, appearing for Bridge and Roof Company (India) Ltd.

It was submitted by Ms. Meharia that no opportunity was granted to either deal with the same or explain the implications of the contents thereof. Had the circumstances under which such a letter was issued been explained, it would not have resulted in the making of the Award, which makes it a fit case for unconditional stay of the execution proceeding.

Such arguments were objected to by Mr Jishnu Chowdhury, Senior Counsel representing M/s FEPL Engineering Pvt. Ltd.

The Court was of the view that non-disclosure of documents during the course of the hearing was a violation of principles of natural justice. Accordingly, the interim Order of Stay was extended up to 30.11.2025 without any conditions while directing for Affidavits.

Advocate for Petitioner: Ms. Vineeta Meharia, Senior Counsel assisted by Mr. Amit Meharia, Mr. Santanu Chatterjee, Mr. Kanishk Kejriwal, Ms. Paramita Banerjee, Mr. Rohan Raj and Mr. Tamoghna Chattopadhyay, Advocates (MCO Legals – Meharia & Company).

Advocate for Respondent: Mr. Jishnu Chowdhury, Senior Counsel with Mr. Ratul Das, Mr. Ravi Kaut Purohit, Mr. Sarban Bhattacharya, Advocates.

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