2025:MHC:741 W.A.No.2795 of 2024 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 19.03.2025 CORAM : THE HON'BLE MR.JUSTICE S.M.SUBRAMANIAM AND THE HON'BLE MR.JUSTICE K.RAJASEKAR W.A.No.2795 of 2024 M/s UGP Engineering Private Limited rep by its Managing Director Mr.S.Umapathy 28/10, 3rd Main Road Ambattur Industrial Estate Chennai 600 058 .. Appellant v. 1. M/s BVS Distilleries Private Limited rep by its Director Mr.B.V.Subba Rao D.No.5-34/3, Godavaru Village Kankipadu Mandal Krishna District, Andhra Pradesh 521 151 2. The Chairperson Micro and Small Enterprises Facilitation Council Chennai Region Industries, Director of Industries and Commerce A30, Thiru Vi Ka Industrial Estate Guindy, Chennai 600 032 ____________ https://www.mhc.tn.gov.in/judis W.A.No.2795 of 2024 3. The Secretary Micro and Small Enterprises Facilitation Council Chennai Region Industries, Director of Industries and Commerce A30, Thiru Vi Ka Industrial Estate Guindy, Chennai 600 032 .. Respondents Memorandum of Grounds of Writ Appeal filed under Clause 15 of the Letters Patent against the order dated 29.09.2023 passed in W.P.No.23032 of 2023. For Appellant :: Mr.G.Ashokapathy for M/s Pass Associates For Respondents :: Ms.Syeda Nadiya for Mr.G.Muthukumar for R1 JUDGMENT (Judgment of the Court was made by S.M.SUBRAMANIAM,J.) Under assail is the order dated 29.09.2023 passed in Writ Petition No.23032 of 2023. The third respondent in the writ petition is the appellant before this Court. 2. The first respondent M/s BVS Distilleries Private Limited instituted writ proceedings challenging the award dated 28.12.2022 passed by the Micro and Small Enterprises Facilitation Council, Chennai Region. ____________ https://www.mhc.tn.gov.in/judis W.A.No.2795 of 2024 The ground mainly raised in the writ petition is that conciliation proceeding must be conducted by the Council to resolve the issues between the parties. In the event of failure, the conciliation proceeding must be closed by recording and passing an order and thereafter, arbitration proceeding under the Arbitration and Conciliation Act must be commenced afresh by affording opportunity to the parties. Proceedings of conciliation cannot be equated with the arbitration proceedings. That apart, the discussions made during the conciliation proceedings cannot be relied upon during the arbitration proceedings, as the conciliation proceedings and arbitration proceedings are distinct and different and independent proceedings are contemplated both under the Act and Rules. That being so, the Micro and Small Enterprises Facilitation Council, on closure of the conciliation proceedings, must record the same and thereafter commence the arbitration proceedings by issuing notice/intimation to the parties and thereafter to proceed in accordance with law. In the present case, since the date of closure and commencement of arbitration has not been done in accordance with the provisions of the Act, the learned single Judge has remanded the matter back to the Micro and Small Enterprises Facilitation Council to ____________ https://www.mhc.tn.gov.in/judis W.A.No.2795 of 2024 conduct arbitration proceedings by following the procedures. Since the matter has been remanded for conducting arbitration proceedings by following the procedures, this Court is not inclined to interfere with the findings of the learned single Judge. Accordingly, the writ appeal stands dismissed. No costs. Index : yes (S.M.S.,J.) (K.R.S.,J.) Neutral citation : yes 19.03.2025 ss To 1. The Chairperson Micro and Small Enterprises Facilitation Council Chennai Region Industries, Director of Industries and Commerce A30, Thiru Vi Ka Industrial Estate Guindy, Chennai 600 032 2. The Secretary Micro and Small Enterprises Facilitation Council Chennai Region Industries, Director of Industries and Commerce A30, Thiru Vi Ka Industrial Estate Guindy, Chennai 600 032 ____________ https://www.mhc.tn.gov.in/judis W.A.No.2795 of 2024 S.M.SUBRAMANIAM,J. AND K.RAJASEKAR,J. ss W.A.No.2795 of 2024 19.03.2025 ____________ https://www.mhc.tn.gov.in/judis