- 1 - HC-KAR NC: 2025:KHC:26951 WP No. 35377 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 35377 OF 2024 (GM-RES) BETWEEN: 1. M/S ITI LIMITED A GOVERNMENT OF INDIA UNDERTAKING HAVING ITS REGISTERED OFFICE AT ITI BHAVAN, DOORAVANINAGAR BENGALURU-560015 REPRESENTED BY ITS ADDITIONAL GENERAL MANAGER MR J S HIGGINS …PETITIONER (BY SRI. RICAB CHAND., ADVOCATE) AND: 1. M/S TEJAS NETWORKS LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AT: PLOT NO.25, 5TH FLOOR, J P SOFTWARE PARK, ELECTRONIC CITY, PHASE 1 HOSUR ROAD, BENGALURU-560100 EMAIL CORPORATE@TEJASNETWORKS.COM PHONE 080-41794600 / 700/800 THROUGH ITS DIRECTOR 2. THE MICRO, SMALL MEDIUM ENTERPRISES FACILITATION COUNCIL BENGALURU DEPARTMENT OF INDUSTRIES AND COMEMRCE NO.49, GROUND FLOOR, SOUTH BLOCK KHANIJA BHAVAN, RACE COURSE ROAD Digitally signed by PRAKASH N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:26951 WP No. 35377 of 2024 BENGALURU-560001 THROUGH ITS MEMBER SECRETARY …RESPONDENTS (BY SRI. SUSHAL TIWARI.N., ADVOCATE FOR R-1; R-2 IS SERVED) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE ORDER DATED 07TH NOVEMBER 2024 RECEIVED ON 18TH NOVEMBER, 2024 PASSED IN CASE NO. 14/2020 BY THE MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL, BENGALURU (R2) ANNEXURE-A, ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV ORAL ORDER The petitioner has called in question validity of the order passed in Case No.14/2020 by the Micro, Small Medium Enterprises Facilitation Council, Bengaluru, at Annexure-A. 2. It is submitted that order at Annexure-A has not taken note of the objections filed by the petitioner, copy of which is produced at Annexure-K. It is submitted that there are certain jurisdictional issues raised including validity of reference and same ought to have been taken note before passing order at Annexure-A. - 3 - HC-KAR NC: 2025:KHC:26951 WP No. 35377 of 2024 3. Per contra, Sri Sushal Tiwari N, learned counsel appearing for respondent No.1 submits that he has filed statement of objections to the response of the petitioner which is produced at Annexure-L. It is submitted that there are certain restrictions on exercise of power under Section 18 (2) of the MSME Act r/w Section 65 to 81 of the Arbitration and Conciliation Act. The Court does not intend to enter into the merits of the contentions raised. 4. Perusal of the order at Annexure -A does not contain any reference to the objections raised. Only on such ground order at Annexure-A is set aside and matter is remitted in case No.14/2020 to be reconsidered by the Micro, Small Medium Enterprises Facilitation Council, Bengaluru. It must be noticed even if the council were of the view that Section 18(2) confers limited jurisdiction, nevertheless contentions of the petitioner at Annexure-K ought to have been adverted to. Accordingly petition is disposed of. 5. All contentions of both sides are kept open. - 4 - HC-KAR NC: 2025:KHC:26951 WP No. 35377 of 2024 6. Learned counsel for the respondents submits that pursuant to the order passed in Case No.14/2020, the Arbitration and Conciliation Centre had taken up the matter and the respondent has paid his share of the fees. 7. It is submitted that by virtue of the present order passed as the Arbitration proceedings also would have to be closed. The fees paid by the respondent and petitioner may be taken note of and not forfeited while keeping the same to be adjusted if matter comes up for arbitration at the subsequent point of time. 8. Said submission is taken note of. The Arbitration and Conciliation Centre, Bengaluru, ought to take note of the observations made herein and not proceed to forfeit the fee paid. 9. Both parties are directed to appear before the Micro, Small Medium Enterprises Facilitation Council, Bengaluru, without further notice on 31.07.2025. Sd/- (S SUNIL DUTT YADAV) JUDGE Psg*:List No.: 1 Sl No.: 26