Madras High CourtWP/16867/2026disposed of with direction

System 5s Private Limited v. Director And Head Office

2026-06-01Honourable Mr Justice M.Dhandapani5 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED:01.06.2026

CORAM:

THE HON'BLE MR. JUSTICE M. DHANDAPANI System 5S Private Limited Authorised Signatory Director Mr.Sudhir Thakker Having registered office at No.105, Nyniappa Naicken Street Chennai-600 003 Tamil Nadu ..Petitioner(s) Vs

1. Director and Head Office MSME Development & Facilitation Council Govt. of India MSME Bhawan 65/1, GST Road Guindy Chennai-600 032 Also having address at O/o, the Regional Joint Director of Industries and Commerce A-30, T.I.VI.K.A Industrial Estate Guindy Chennai-600 032

2. The Project Director Andhra Pradesh Disaster Recovery Project Having its office at Genious JR Towers Kunchanapalli Tadepalli Guntur District - 522 501 1/5

3. The Director General State Disaster Response & Fire Services Having their office at Governorpet Vijayawada Andhra Pradesh - 520 002 ..Respondent(s) Prayer: Writ Petition filed under Article 226 of the Constitution of India to issue Writ of Mandamus directing the 1st respondent to fix an early date for final hearing and for the expeditious disposal of case No.MSEFC/CR/433/2023 as per section 18(5) of the MSME Act.

For Petitioner : Mr.K. Gaurav Kumar

ORDER

The relief sought in this writ petition is a direction to the 1st respondent to fix an early date for final hearing and for the expeditious disposal of case No.MSEFC/CR/433/2023 as per section 18(5) of the MSME Act.

2. It is stated that the petitioner is a Micro and Small Enterprise engaged in the manufacture of fire safety equipment. The 2nd respondent awarded a contract to the petitioner on 31.08.2021 for supply of fire proximity suits valued at Rs.1,89,95,000/- under the Andhra Pradesh Disaster Recovery Project. Though the petitioner completed the supplies and a Performance Certificate dated 28.06.2023 was issued acknowledging satisfactory performance, the amounts due under the contract were not paid. 2/5

3. It is the further averment that the petitioner invoked the provisions of the MSMED Act, 2006 and filed a reference before the 1st respondent seeking recovery of the principal amount along with statutory interest. Later, the Council, by proceedings dated 16.02.2026, recorded the failure of conciliation and resolved to initiate arbitration proceedings under Section 18(3) of the Act. However, no further action has been taken thereafter. Hence this writ petition.

4. Leraned counsel for the petitioner submitted that the continued pendency of the proceedings is contrary to the mandate contained under Section 18(5) of the MSMED Act and has caused serious financial hardship to the petitioner. Hence, the present writ petition has been filed seeking a direction to the 1st respondent to dispose of the proceedings within a stipulated time.

5. Heard the learned counsel for the petitioner and perused the entire records.

6. Considering the limited relief sought for by the petitioner and without expressing any opinion on the merits of the claim, this Court directs the 1st respondent to proceed with and dispose of the proceedings in MSEFC/CR/433/2023, in accordance with law, after affording opportunity to all concerned parties, within a period of eight weeks from the date of receipt of a copy of this order, if there is no legal impediment. 3/5

7. With the above directions, the writ petition stands disposed of. No costs.

01.06.2026 Index : Yes / No Speaking Order / Non-speaking order vsi2 To :

2. The Project Director Andhra Pradesh Disaster Recovery Project Having its office at Genious JR Towers Kunchanapalli Tadepalli Guntur District - 522 501

3. The Director General State Disaster Response & Fire Services Having their office at Governorpet Vijayawada Andhra Pradesh - 520 002 4/5

M. DHANDAPANI, J.

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