Arbitral Award – MSMED Act – Delivery & Acceptance Date
Arbitral Award – Section 18 of MSMED Act –
The Arbitral Award dated 16.6.2022 was passed in respect of the disputes arising out of three purchase orders and the invoices.
The petitioner had taken defence that the supply was late i.e. beyond 26 days of the date of LoI and supplies were not conformity with the technical & quality stipulations in the purchase orders. The respondent did not address these issues, the petitioner was forced to hire another vendor, incur expenses, suffer liquidated damages and additional manufacturing & interest costs.
The respondent raised the counter claim of Rs.61.48 lakhs.
However, the Arbitral Tribunal passed the Award for Rs.16,16,950/- with interest as per sections 15 and 16 of the MSMED Act. This was confirmed in section 34 petition by the District Judge, Pune.
HELD that the deadline for deemed acceptance of the supply of goods is mandatory since the appointed day in Section 2(b) of the Act has other compliance consequences.
Judgment dated 30.9.2025 of the High Court of Bombay in Arbitration Appeal No.47 of 2023 of Mahindra Defence Systems Limited Vs. Ranjana Industries
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