M/S Brijwasi Book Centre vs State of U.P. and 4… — Writ and Judicial Review | Allahabad HC (2025)

M/S Brijwasi Book Centre vs State of U.P. and 4… — Writ and Judicial Review | Allahabad HC (2025)

What the court decided

AI extract

Outcome

Liberty granted to the petitioner to apply under Section 19 of the Act within four weeks; upon such application, the Micro Small and Medium Enterprises Development Council to hear and decide within a further two months subject to the Section 19 deposit condition; interim protection that no recovery pursuant to the recovery certificate/notice dated 7.11.2025 shall be pursued once such application is moved; petition consigned to records subject to this liberty.

Issue for consideration

Whether the writ petition under Article 226 seeking quashing of the recovery certificate dated 7.11.2025, founded on the plea that the underlying arbitral award was ex-parte, should be entertained by this Court, or whether the petitioner's remedy lies in an application under Section 19 of the Micro Small and Medium Enterprises Development Act, 2006.

Court's answer

The proper remedy for a petitioner aggrieved by the arbitral award of the Micro Small and Medium Enterprises Development Council on the plea that it was an ex-parte award is an application under Section 19 of the Act; petitioner's counsel having been unable to dispute this upon pointed query, the Court declined to grant indulgence in the writ petition.

Ratio / Principle

If the petitioner applies under Section 19 within a period of four weeks, the Micro Small and Medium Enterprises Development Council will proceed to hear and decide the matter within a further period of two months, provided the petitioner complies with the condition of deposit as prescribed under Section 19 of the Act.

Key takeaways

In the event any such application under Section 19 is moved, no recovery shall be pursued against the petitioner pursuant to the recovery certificate/notice dated 7.11.2025.ratio¶18
Subject to the aforesaid liberty, the petition is consigned to records.ratio¶19

Detailed headnote1 paragraphs

WRIT-C No. 43343 of 2025, High Court of Judicature at Allahabad (Ajit Kumar, J. and Swarupama Chaturvedi, J.), decided December 10, 2025. M/s Brijwasi Book Centre petitioned under Article 226 of the Constitution for quashing of the citation/recovery certificate dated 7.11.2025 issued by respondent no.3 for realization of the amount of an arbitral award issued by the Micro Small and Medium Enterprises Development Council under Section 18 of the Micro Small and Medium Enterprises Development Act, 2006, pleading that the award was ex-parte. The Additional Chief Standing Counsel raised the preliminary objection that the proper remedy is an application under section 19 of the said Act; petitioner's counsel could not dispute it. The Court declined indulgence, granted liberty to apply under Section 19 within four weeks, undertook that the Council would hear and decide within a further two months provided the Section 19 deposit condition is complied with, and directed that no recovery pursuant to the certificate dated 7.11.2025 be pursued once such application is moved. Subject to this liberty, the petition was consigned to records.

HIGH COURT OF JUDICATURE AT ALLAHABAD

WRIT - C No. - 43343 of 2025

M/S Brijwasi Book Centre

.....Petitioner(s)

Versus

State Of U.P. And 4 Others

Counsel for Petitioner(s)	: Abdul Majeed, Sufia Saba .....Respondent(s)
Counsel for Respondent(s)	: C.S.C.

Court No. - 4

HON'BLE AJIT KUMAR, J. HON'BLE SWARUPAMA CHATURVEDI, J.

Heard Shri Abdul Majeed, learned counsel appearing for the petitioner and Shri Anuj Pratap Singh, learned Additional Chief Standing Counsel appearing for the State- respondents.

By means of this petition filed under Article 226 of the Constitution, petitioner has prayed for quashing of the citation/ recovery certificate dated 7.11.2025 issued by respondent no.3 for realization of the amount of arbitral award issued by the Micro Small and Medium Enterprises Development Council under Section 18 of the Micro Small and Medium Enterprises Development Act, 2006.

A preliminary objection has been raised by learned Additional Chief Standing Counsel that in the event petitioner is aggrieved by the award raising the plea that it was an ex-parte award, the proper remedy for the petitioner is to move an application under section 19 of the said Act.

Upon a pointed query being made, learned counsel for the petitioner could not dispute the same.

In view of above, we decline to grant indulgence in the matter, however, liberty rests with the petitioner to apply under Section 19 of the Act subject to the conditions prescribed under Section 19 of the Act and if he does so within a period of four weeks from today the Micro Small and Medium Enterprises Development Council will proceed to hear and decide the matter within a further period of two months provided

WRIC No. 43343 of 2025

2

petitioner complies with the condition of deposit as prescribed under Section 19 of the Act.

It is further provided that in the event any such application is moved, the amount as directed herein-above, no recovery shall be pursued against the petitioner pursuant to recovery certificate/ notice dated 7.11.2025.

Subject to aforesaid liberty, this petition is consigned to records.

(Swarupama Chaturvedi,J.) (Ajit Kumar,J.)

December 10, 2025 Shiv

Digitally signed by :- SHIV KUMAR SHARMA High Court of Judicature at Allahabad