Quick Summary: Dodal Electro Instruments disagreed with a decision by the Micro and Small Enterprises Facilitation Council (MSEFC) at Daman, which told them to pay a large amount of money to Mexim Adhesive Tapes. The court noticed mistakes in how the MSEFC handled the situation and sent the case back to be reviewed again.
Dodal Electro Instruments, owned by Mr. Arinjay Dodal, had a business deal with Mexim Adhesive Tapes where they bought self-adhesive tape. Mexim said Dodal owed them money and took the issue to the MSEFC to settle it.
The MSEFC told Dodal to pay Mexim around Rs. 70 lakhs, which included a lot of interest. Dodal argued against this, saying they weren’t properly informed and that the process was unfair.
"The decisions were made without us, breaking the rules of fairness," said Mr. Keswani, Dodal's lawyer.
Dodal claimed that: - They were not properly informed about the meetings. - The MSEFC didn't follow the correct steps for resolving the dispute. - Mexim was not registered as a small business at the time of the deal, making their claim invalid.
The court, led by Judge N.J. Jamadar, noticed several problems: - MSEFC did not properly separate the steps of trying to settle the dispute and then resolving it. - There was no clear sign that the resolution process had been started correctly. - The decisions didn't have the qualities of a proper resolution.
"The challenged order does not count as a proper resolution," said the judgment.
The court decided to: - Cancel the MSEFC's decisions. - Send the case back to the MSEFC for a new resolution process. - Make sure that the correct steps are followed this time.
Both parties are to meet before the MSEFC on October 6, 2025, for the new resolution process. The MSEFC is expected to strictly follow the correct steps this time.
The court's decision emphasizes the need to follow proper procedures in resolving disputes and ensuring that everyone gets a fair chance to be heard.
