Disposed

Kml Sourcing Solutions v. the State of Andhra Pradesh

Andhra Pradesh HC14 Jul 2025WP/15649/2025

Case brief

AI extract

What is this about?

Micro enterprise sought a mandamus against the MSEFC's failure to take up its Section 18 MSMED Act payment reference made on 12-11-2024. The court noted the Council's statutory duty to conduct or refer conciliation and disposed of the writ directing the Council to pass appropriate orders in accordance with law.

What did the court decide?

Direction to Respondent No.2 (MSEFC) to pass appropriate orders in accordance with law in terms of Section 18(2) MSMED Act; no order as to costs; interlocutory applications closed.

Kml Sourcing Solutions Vs the State… — Contract and Commercial Disputes | Andhra Pradesh HC (2025)

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APHC0103117g2025

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IN THE HIGH COURT OF ANDHRA PRADESH 0gS AT AMARAVATI 0 (Special Original Jurisdiction)

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TUESDAY, THE FIFTEENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE

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PRESENT

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THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA

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WRIT PETITION NO: 15649 OF 2025

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Between:

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KML Sourcing Solutions, Rep. by its Authorised Signatory, Dadi Kanaka Durga, W/o Dadi Ravikumar, Aged about 36 years, Regd.^{OfficeatD.No.49-} 54-15/1/4, Flat No. 101, Shree Keerthi Apartments, Chatrapati Street, Radhakrishna Layout, Seethammadhara, Visakhapatnam-⁵³⁰⁰¹

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...Petitioner

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AND

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The State of Andhra Pradesh, Rep by its Principal Secretary, Industries and Commerce Department, A.P. Secretariat at Velagapudi, Amaravathi, Guntur District

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A P Micro and Small Enterprises, Facilitation Council (MSEFC), Rep. by Commissioner, 8*^ Floor, APIIC Towers, Autonagar, Mangalagiri, Guntur-522503

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The Union of India, Rep. by its Secretary, Micro, Small, Medium Enterprises (MSME) Department, Udyog Bhawan, Rafi Marg,^NewDelhi - 110011

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M/s MRG Constructions, Rep. by Rajiv Suri, MRG House, Mirpur Colony, Pathankot, Punjab- 145001

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Vishwa Samudra Engineering Private Limited, Rep. by its General Manager, 8^'" and Q**" Floors, Vamsiram Jyothi Valencia, Road No.2, Banjara Hills, Khairatabad, Hyderabad - 500034

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...Respondents

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, order or direction mostly one which is in the nature of a Writ of Mandamus declaring the action of the Respondent No.2 in not disposing of the reference made by the Petitioner dated 12-11-2024 under Section 18 of the Micro, Small, Medium Enterprises Development (MSMED) Act, 2006 as illegal, irregular, arbitrary, irrational, unjustified and unconstitutional and consequently direct the Respondent No.2 to expeditiously dispose the reference made by the Petitioner under Section 18 of the Micro, Small, Medium Enterprises Development (MSMED) Act,²⁰⁰⁶

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lA NO: 1 OF 2025

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the Respondent No.2 to expeditiously dispose the reference made by the Petitioner dated 12-11-2024 under Section 18 of the Micro, Small, Medium Enterprises Development (MSMED) Act, 2006

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Counsel for the Petitioner: SRI THUPILI RAVEENDRA BABU

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Counsel for the Respondent No.1, 2: GP FOR INDUSTRIES COMMERCE Counsel for the Respondent No.5: SRI VADDAPALLI HEMANTH KUMAR The Court made the following order:

APHC010311792025

[3458]

Jirl ;■[

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)

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TUESDAY,THE FIFTEENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE

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PRESENT

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THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA

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WRIT PETITION NO: 15649/2025

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Between:

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1.KML SOURCING SOLUTIONS REP. BY ITS AUTHORISED SIGNATORY, DADI KANAKA DURGA, W/0 DADI RAVIKUMAR, AGED ABOUT 36 YEARS, REGD. OFFICE AT D.NO.49-54-15/1/4, FLAT NO.101, SHREE KEERTHI APARTMENTS, CHATRAPATI STREET, FRADHAKRISHNA LAYOUT, SEETHAMMADHARA, VISAKHAPATNAM- 53001

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...PETITIONER

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1.THE STATE OF ANDHRA PRADESH, REP BY ITS PRINCIPAL SECRETARY, INDUSTRIES AND COMMERCE DEPARTMENT, A.P. SECRETARIAT AT VELAGAPUDI AMARAVATHI, GUNTUR DISTRICT

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2.A P MICRO AND SMALL ENTERPRISES, FACILITATION COUNCIL (MSEFC), REP. BY COMMISSIONER, 8TH FLOOR, APIIC TOWERS, AUTONAGAR, MANGALAGIRI, GUNTUR-522503

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3.THE UNION OF INDIA, REP. BY ITS SECRETARY, MICRO, SMALL, MEDIUM ENTERPRISES (MSME) DEPARTMENT, UDYOG BHAWAN, RAFI MARG, NEW DELHI - 110011

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4.M/S MRG CONSTRUCTIONS, REP. BY RAJIV SURI, MRG HOUSE, MIRPUR COLONY, PATHANKOT, PUNJAB- 145001

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5.VISHWA SAMUDRA ENGINEERING PRIVATE LIMITED, REP.^BYITS GENERAL MANAGER, 8TH AND 9TH FLOORS, VAMSIRAM JYOTHI

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VALENCIA, ROAD N0.2, BANJARA HILLS, KHAIRATABAD, HYDERABAD - 500034

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...RESPONDENT(S):

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue an appropriate Writ, order or direction mostly one which is in the nature of a Writ of Mandamus declaring the action of the Respondent No.2 in not disposing of the reference made by the Petitioner dated 12-11-2024 under Section 18 of the Micro, Small, Medium Enterprises Development (MSMED) Act, 2006 as illegal, irregular, arbitrary, irrational, unjustified and unconstitutional and consequently direct the Respondent No.2 to expeditiously dispose the reference made by ,the Petitioner under Section 18 of the Micro, Small, Medium Enterprises Development (MSMED) Act 2006 and pass

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lA NO: 1 OF 2025

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to direct the Respondent No.2 to expeditiously dispose the reference made by the Petitioner dated 12-11-2024 under Section 18 of the Micro, Small, Medium Enterprises Development (MSMED) Act, 2006 and pass

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Counsel for the Petitioner:

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1.THUPILI RAVEENDRA BABU

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Counsel for the Respondent(S):

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1.VADDAPALLI HEMANTH KUMAR

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2.GP FOR INDUSTRIES COMMERCE

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The Court made the following:

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ORDER:-

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Heard Sri Thupili Raveendra Babu, learned counsel for the petitioner and Sri Vaddapalli Hemanth Kumar, learned counsel for the

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5**^ respondent. Learned Assistant Government Pleader for Industries and Commerce, takes notice for the 2""^ respondent.

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The grievance of the petitioner is against the inaction of the 2'"^ respondent in considering and disposing of the application of the petitioner dated 12.11.2024 for reference under Section 18 of the Micro, Small, Medium Enterprises Development (MSMED) Act, 2006.

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The petitioner is a Micro Enterprise registered under the Micro, Small, Medium Enterprises Development (MSMED) Act, 2006. The petitioner was awarded works by the 4*^ and respondents. Pursuant to the same, the petitioner entered into a tripartite agreement with 4*^ and 5'^ respondents and executed the work assigned as per the agreement. However, the 4**^ respondent failed to perform the obligation of payment under the contract. Although, the petitioner has submitted the Net Receivables after attaching the Tax Invoices. It is stated that the amount due to the petitioner is Rs.44,30,778.75/-. Seeking redressal of it’s grievances, the petitioner submitted a Statement of Claims in Form-1 under Section 18 of Micro, Small, Medium Enterprises Development (MSMED) Act, 2006 on 10.09.2024. The said application was received by the 2'^'^ respondent on 12.11.2024, however, the same has not been taken up^{forconciliation.} It is relevant to refer to the provisions under Section 18 (2) and 18 (5) of Micro,

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Small, Medium Enterprises Development (MSMED) Act, 2006, which reads as follows:

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Sec.18: Reference to Micro and Small Enterprises Facilitation Council :

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(1)

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(2) On receipt of a reference under sub-section (1), the Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such an institution or centre, for conducting conciliation and the provisions of sections 65 to 81 of the Arbitration and Conciliation Act, 1996 shall apply to such a dispute as if the conciliation was initiated under Part III of that Act.

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(5) Every reference made under this section shall be decided within a period of ninety days from the date of making such a reference."

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In terms of the above provision, the 2^^ respondent is bound to conduct conciliation in the matter or to seek assistance of any institution or centre providing the alternative dispute resolution service by making a reference to such an institution or centre, for conducting^{conciliation.} 5. In terms of the above provisions, since none of the steps have been taken by the 2'"'^ respondent, the writ petition is disposed of directing the 2"'* respondent to pass appropriate orders in accordance with law, in terms of Section 18 (2) of Micro, Small, Medium Enterprises Development (MSMED) Act, 2006. There shall be no order as to costs.

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As a sequel, interlocutory applications, pending if any, shall stand

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closed.

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//TRUE COPY//

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Sd/- K TATA RAO DEPUTY REGISTRAR / ECTIO FFICER

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To,

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The Principal Secretary, State of Andhra Pradesh, Industries and Commerce Department, A.P. Secretariat at Velagapudi, Amaravathi, Guntur DistrICT

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The Commissioner, A P Micro and Small Enterprises, Facilitation Council (MSEFC), 8*^ Floor, APIIC Towers, Autonagar, Mangalagiri, Guntur-522503

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The Secretary, Union of India, Micro, Small, Medium Enterprises (MSME) Department, Udyog Bhawan, Rafi Marg, New Delhi^-110011

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Sri Rajiv Suri, M/s MRG Constructions, MRG House, Mirpur Colony, Pathankot, Punjab- 145001

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The General Manager, Vishwa Samudra Engineering Private Limited, Rep. by its General Manager, 8*^ and 9'*^ Floors, Vamsiram Jyothi Valencia, Road No.2, Banjara Hills, Khairatabad, Hyderabad^-500034

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