Hey there, legal enthusiasts! Grab your popcorn because this case between Dodal Electro Instruments and the Micro and Small Enterprises Facilitation Council (MSEFC) is packed with twists and turns. Let's dive into the details!
In one corner, we have Dodal Electro Instruments, led by Mr. Arinjay Dodal, a company dealing with electrical instruments. In the other corner is Mexim Adhesive Tapes Pvt. Ltd., a manufacturer of paper, rubber, and plastic products. The referee? The MSEFC at Daman.
The trouble started when Dodal Electro bought self-adhesive tape from Mexim. Two work orders were issued for these purchases, but Dodal Electro allegedly failed to pay up. Mexim claimed Rs.1,47,610 and Rs.3,00,631 for the supplies, along with hefty interest, taking the total claims to Rs.28,49,940 and Rs.42,35,504 respectively.
MSEFC directed Dodal Electro to pay Mexim the claimed amounts with interest. But Dodal Electro wasn't having it. They argued that the orders were made without proper notice and that Mexim wasn't even registered as a small enterprise at the time of the transactions.
"The orders were passed without us being present and have serious legal issues," argued Dodal Electro.
Mr. Keswani, Dodal Electro's lawyer, claimed the process was unfair and the MSEFC didn't follow proper steps. On the flip side, Mexim's lawyer, Mr. Agarwal, insisted that Dodal Electro was aware of the proceedings and had even acknowledged their debt.
Judge N.J. Jamadar had a lot to consider. The main issue was whether MSEFC followed the correct legal steps. The judge found that MSEFC failed to properly transition from trying to help both sides agree to making a formal decision, which is a big no-no.
"The orders do not count as a formal decision," the judgment noted, pointing out procedural lapses.
The court decided to cancel the orders and send the case back to MSEFC for a new arbitration process. Both parties were told to appear before MSEFC on October 6, 2025, to start anew.
This decision means the case isn't over yet. MSEFC will have to go through the arbitration process correctly this time. It's a second chance for both parties to present their cases properly.
