Rule 5 provides for recovery of the amount for which award is passed under section 18 3 of the Act of 2006 as arrears of land revenue thereby providing additional remedy for recovery of the awarded sum than the one provided in section 36 1 of the Arbitration and Conciliation Act, 1996 hereinafter referred to as the Act of 1996 .
It is pertinent to mention that the award was passed under the Act of 2006 by which the appellant was directed to pay awarded sum to respondent No.3 i.e. Lakshmi Engineering Industries Bhopal Pvt.
The appellant filed another W.P. C No.12127 of 2016 for quashing the recovery proceedings on the ground that the recovery was number in companypliance with Rule 5.
Thereafter, appellant filed a writ petition before the Allahabad High Court for quashing the recovery proceedings.
Ltd. The award was passed by the Madhya Pradesh Facilitation Council for a sum of Rs.1,15,77,630/ along with an amount of Rs.1,04,96,746/ towards interest up to 10.1.2013.
Writ Petition C No.12127 of 2016 had been allowed by the High Court of Madhya Pradesh and it permitted respondent No.
However, Tehsildar of Dadri, Gautam Buddha Nagar on 23.5.2016 withdrew an amount of Rs.1,18,78,588.14/ from the appellants bank account with ICICI Bank pursuant to the recovery citation.
On 24.5.2016, it is averred by the appellant that a further amount of Rs.2,12,33,618.57/ was recovered from the bank account of the appellants with the State Bank of India.
The appellant filed Writ Petition C No.11824 of 2016 in the High Court of Madhya Pradesh for declaring Rule 5 as ultra vires.
The recovery citation was served upon the appellant on 20.4.2016 purported to be one under the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950.
Fresh recovery citation was served on the petitioner on 19.9.2016.
Another citation was received by the appellant on 16.5.2016 which was issued on 20.4.2016.
The Collector, Noida, initiated recovery of the amount as per letter dated 2.4.2016 issued by the Madhya Pradesh Micro and Small Enterprises Facilitation Council under the Rules.
The Tehsildar, Dadri issued fresh recovery proceedings under Rule 5 for recovery of Rs.5,29,58,937/ as per the award dated 15.1.2014.
The said writ petition questioning the rule had been dismissed.
The petition filed in the High Court of Allahabad was dismissed in view of the fact that the aforesaid writ petition had been allowed by the High Court of Madhya Pradesh.
ARUN MISHRA, J. Leave granted.
This appeal has been preferred by the appellant Power Machines India Ltd., aggrieved by the judgment and order dated 18.7.2016 passed by the High Court of Madhya Pradesh at Jabalpur, thereby dismissing the Writ Petition filed by the appellant for declaring Rule 5 of Madhya Pradesh Micro and Small Enterprises Facilitation Council Rules, 2006 hereinafter referred to as the Rules ultra vires, which had been framed by the Government of Madhya Pradesh in exercise of the power companyferred by section 30 read with section 21 3 of the Micro, Small and Medium Enterprises Development Act, 2006 hereinafter referred to as the Act of 2006 .
Payment of actual amount of interest was three times of the bank rate as numberified by the Reserve Bank of India to be paid within 30 days of the award.
3 to initiate recovery proceedings under the rule de numbero and in accordance with law.
The award was passed on 15.1.2014.
