The J&K&L High Court recently dealt with a petition filed under Article 227 of the Constitution of India. The petition challenged an award passed by the Secretary of the Micro and Small Enterprises Facilitation Council in Kashmir. During the proceedings, the Court examined the objectives and rationale of the MSME Act and found that the Council did not comply with the mandate set forth in Sections 15 to 18 of the MSME Act 2006. As a result, the proceedings were vitiated..
The High Court then issued detailed directions to the Council to ensure that all proceedings under the MSME Act and the Arbitration and Conciliation Act, 1996 are conducted according to the applicable regulations. These directions were meant to clarify the Council’s responsibilities and ensure that all proceedings are carried out in a lawful, professional, and impartial manner.