21 December 2021| Indian Highways Management Company Limited v. SOWil Limited | OMP (Comm.) 376 of 2021 | Vibhu Bakhru J | Delhi High Court
SOWil, a supplier and small enterprise under the MSMED Act, had applied to the court for the appointment of an arbitrator and, thus, invoked arbitration under the ACA directly rather than via the procedure under the MSMED Act. The procedure under the MSMED Act is, broadly: the reference of the dispute under Section 18 to a Facilitation Council, followed by an attempt of conciliation, and then, if required, arbitration under the ACA.
The tribunal granted SOWil interest under Section 16 MSMED Act (20.25% per annum compounded annually).
Was SOWil disentitled to interest under the MSMED Act, and the tribunal commit patent illegality or contravened public policy of India? Answering, no, and dismissing the set-aside application, the court ruled that:
Read the decision here.
Categories: Application for Setting Aside Arbitral Award | Arbitration Under MSMED Act | Award of Interest | Grounds for Setting Aside Arbitral Award | MSMED Act | Patent Illegality | Section 34 (2A) | Setting Aside Arbitral Award | Special Act v General Act | Standard for Setting Aside Arbitral Award