Haryana Cong asked to pay Rs. 33 lakh to MSME as due amount for advertisement

In a significant award, the Himachal Pradesh Micro, Small & Medium Enterprises Development (MSMED) arbitrator has directed the Haryana Congress to pay Rs 33.75 lakh to a Himachal Pradesh-based MSME unit as due amount for advertisement published more than four years ago.

In its 17-page award, a copy of which PTI has accessed, announced on January 9, the arbitrator, retired district and sessions judge Ravinder Parkash Verma, directed Haryana Pradesh Congress Committee president Ashok Tanwar and its treasurer Tarun Bhandari to pay Rs 33.75 lakh to Nadaun, Hamirpur-based MSME unit First News director Surender Singh Hooda.

The arbitrator issued direction for paying within 30 days to Hooda Rs 33,75,984 which include Rs 16,01,522 as balance principal amount for publishing political advertisement in its daily paper 'Pehli Khabar' from October 5 to October 15 in 2014 and Rs 17,74,462 as interest on this amount under Section 16 of MSMED Act, 2006.

In his award, Verma stated Haryana Congress would also be liable to pay to the petitioner interest from the date of filing the present reference on January 4 last year up to the date of passing the award and future interest from the date of passing the award till the payment is made, as per interest rate fixed under Section 16 of MSMED Act, 2006.

The petitioner Hooda is entitled to get reimbursed the arbitrator's fees of Rs 40,000 from Haryana Congress, Verma stated in his award, adding he would also be entitled to get the litigation expenses and other miscellaneous expenses to the extent of Rs 60,000 from HPCC.

The petitioner will be entitled to recover the amount from HPCC through its office bearers, Verma mentioned in his award.

Hooda had made the reference number 52/2017 to Himachal Pradesh Micro and Small Enterprise Facilitation Council, constituted under Section 20 of the MSMED Act for recovery of Rs 33,75,598 from HPCC.

The HPMSEFC chairman-cum- HP Industries Commissioner appointed Verma as arbitrator on June 30 last year to arbitrate the dispute as the parties had failed to reconcile the matter before HPMSEFC.