Authority: High Court of Judicature at Madras
Order Date: 15-09-2026
Case Overview
- Petitioners: M/s.Ganesh Electricals, No.1, II Floor, New Street, Sakthi Nagar, Porur, Chennai – 600 116.
- Respondents: M/s.K.S.Mani Electricals, No.5, 3rd Cross Street, Velmurugan Nagar, Kuyavarpalayam, Puducherry – 605 013.
- Civil Revision Petition No.3968 of 2025 & CMP No.20748 of 2025 filed under Article 227 of the Constitution of India against the notice dated 14.5.2025 (No. 6488/Ind. & Com./ MSEFC/T11 2025/441) issued by the Chairman (MSEFC)-cum-Director (Ind. & Com.), Micro & Small Enterprises Facilitation Council, Puducherry.
- Background: The petitioner was awarded a contract on 29.2.2016 by the Government of Puducherry for electrical cable laying. The respondent sought labour and consumables, leading to a dispute. The petitioner claimed the respondent owed Rs.1,16,75,244/- and filed a commercial suit (C.O.S.No.557 of 2021) in the Principal District Court, Tiruvallur.
- The respondent earlier approached the Council for conciliation; the Council rejected the claim on 29.9.2023. A writ petition (W.P.No.2224 of 2025) challenging that rejection was filed and subsequently withdrawn on 19.6.2025, after the Council indicated it would entertain a fresh claim.
- The impugned notice of 14.5.2025 revived the respondent's claim and called the petitioner to attend mediation.
- Grounds of revision: (i) Council lacks jurisdiction to issue the notice; (ii) parallel prosecution of the claim is barred by the pending civil suit.
- Arguments: The petitioner argued that the earlier rejection and withdrawal of the writ made the Council's later notice ultra vires. The respondent contended that the Council’s submission in the withdrawn writ indicated willingness to entertain the fresh claim, thus not a review of the earlier order.
- The Court referenced the Single Judge order in Sree Infratech India Pvt. Ltd. Rep.by its Director Vs. Chairman, MSEFC & Director (Ind. & Com.), MSEFC, Directorate of Industries & Commerce, Government of Puducherry (W.P.No.33528 of 2025 dated 02.12.2025) and the Apex Court judgment in Gujarat State Civil Supplies Corporation Ltd. Vs. Mahakali Foods (P) Ltd. (2023 (6) SCC 401), holding that a notice calling for mediation does not create a lis and does not fall within the ambit of Article 226/227, and that Section 18 of the MSME Act permits the Council to proceed despite any bar under the Arbitration and Conciliation Act, 1996.
Final Outcome
- The High Court held that the revision petition had no merits and dismissed it.
- No costs were awarded.
- Consequently, the connected CMP No.20748 of 2025 was also dismissed.
Topics: Legal; MSME Regulation