Authority: High Court of Uttarakhand at Nainital
Order Date: 25 August 2026
Case Overview
- Petitioner: M/s Bansal Construction, a small enterprise.
- Respondents: State of Uttarakhand and others.
- Writ Petition (M/B) No.655 of 2026 filed seeking a writ of mandamus to command release of outstanding payments of Rs 50,00,000 and security deposit of Rs 18,07,085 with interest, invoking the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act).
- The petitioner alleged that an order passed by the Engineer after filing the petition was erroneous and sought reference of the dispute to an adjudicator as stipulated in the contract.
- The Court observed that the petitioner, being a small enterprise, falls within the ambit of the MSMED Act. Section 17 of the Act mandates payment of the amount with interest, and Section 18 provides for dispute resolution first through the Micro and Small Enterprises Facilitation Council for conciliation and, if unsuccessful, by arbitration or alternative dispute resolution mechanisms.
Final Outcome
- The Court disposed of the writ petition, granting the petitioner liberty to avail the remedy provided under the contract or under the provisions of the MSMED Act, without ordering the immediate release of the claimed amounts.
Topics: MSMED Act, Payment Dispute