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Judgment
These two applications have been filed by the petitioners and the State MSME Authority in four writ petitions which were disposed of by orders of a
Coordinate Bench dated 12th December, 2019.
By the said order, the MSME was directed to issue a fresh certificate in favour of the petitioners, being private transport contractors, incorporating the
petitioners’ investments.
The Authority was directed to issue the fresh certificate within a period of two weeks from the date of the order and the show‐cause notices issued
by the respondent Oil Companies were set aside.
The writ petitions were filed by the petitioners challenging the show‐cause notices issued by the Oil Companies by which the UAM (Udyog Aadhaar
Memorandum) numbers of the petitioners were to be cancelled or the cancellation process initiated unless the Oil Companies received the
verification/authentication certificate from the MSME Authorities within 11th October, 2019.
The petitioners were, hence, constrained to file the writ petitions which were disposed of by orders dated 12th December, 2019 containing the
direction on the MSME Authorities as stated above.
A prayer is now made on behalf of learned counsel appearing for the petitioners in CAN No. 203 of 2020 for extension of time for the issuance of the
fresh certificates in favour of the petitioners. The immediate apprehension is that if the fresh certificates are not issued, the petitioners’ contracts
with the Oil Companies will be terminated under the relevant conditions of Tender.
Learned Additional Advocate General seeks to relieve the State Authorities from what he claims to be disputes of a private nature between the
contractors (petitioners) and the Oil Companies (the respondents). On the other hand, the State MSME Authorities has filed an application being CAN
No. 129 of 2020 which seeks to recall and/or modify the order dated 12th December 2019 on the ground that the MSME Act and relevant
notifications do not permit the State Authorities to issue a certificate as directed by the Coordinate Bench. Counsel points to a Memo dated 2nd
October, 2019 which directed the State to cancel all certificates issued earlier in different formats and issue them a fresh in the mentioned format.
He submits that the General Managers of the District Industries Centers (DIC) have no mechanism to physically verify the investment of the
equipment of the MSME Authority and hence the format demanded by the oil companies cannot be adhered to in any manner whatsoever.
He accordingly seeks recalling of the order dated 12th December, 2019.
Learned counsel appearing for the Oil Companies insists that a physical verification of the investment and other particulars can be given by the State
MSME Authorities and relies on Section 7 of the Micro Small and Medium Enterprises Development Act, 2006 together with a Gazette
notification/office memorandum of 13th October, 2015 and 13th July, 2017 which entitle the State Government to authorize a person to seek
documentary proof of the information provided in the memorandum of self‐certification.
Having heard the learned counsel for the parties, this appears to be a case where despite writ petitions being disposed of in December, 2019, the writ
petitioners have been caught in the cross‐ fire of the rival claims of the Oil Companies and the State MSME authorities.
The threatened outcome of the crossfire is that the petitioners’ contract with the Oil Companies will be terminated.
This would be borne out from the tenor of the impugned communications which were issued by the oil companies to the petitioners in October, 2019.
Notwithstanding the position of the petitioners, the submission made on behalf of the State MSME authorities cannot also be totally ignored. The fact
that the relevant statute or Central Government notification does not allow the State authorities to issue a certificate as per the directions contained in
the order of December 12, 2019 is required to be gone for effective adjudication of the contentions raised by the parties. It may be also mentioned that
by an order dated 11th February, 2020 passed in a batch of pending writ petitions, a coordinate Bench has been pleased to restrain the oil companies
from taking any coercive action against the petitioners or terminate their contracts in the meantime on the ground of the certificates not being
produced to the satisfaction of the oil companies.
The petitioners in those writ petitions are similarly placed to the present petitioners.
In view of the rival submissions which have been made, the petitioners cannot be abandoned at this stage and left to fend for themselves in the face of
the conflicting interest of the Oil Companies and the State Authorities. The respective contentions of the parties can be heard if the order dated 12th
December 2019 is recalled.
By the reason of the specific stand of the State that a fresh certificate cannot be issued at this stage, the order dated 12th December, 2019 is recalled.
The applications of the writ petitioners as well as the State Authorities together with all other applications bearing CAN 140 of 2020, CAN 187 of
2020, CAN 132 of 2020, CAN 202 of 2020, CAN 138 of 2020, CAN 269 of 2020, CAN 126 of 2020, CAN 267 of 2020, CAN 144 of 2020, CAN 198
of 2020, CAN 130 of 2020, CAN 266 of 2020, CAN 201 of 2020, CAN 145 of 2020, CAN 193 of 2020, CAN 142 of 2020, CAN 197 of 2020, CAN
137 of 2020, CAN 192 of 2020, CAN 127 of 2020, CAN 208 of 2020, CAN 131 of 2020, CAN 191 of 2020, CAN 136 of 2020, CAN 187 of 2020,
CAN 270 of 2020, CAN 375 of 2020, CAN 376 of 2020, CAN 141 of 2020, CAN 194 of 2020, CAN 3426 of 2020, CAN 3427 of 2020, CAN 3428 of
2020, CAN 3429 of 2020, CAN 3430 of 2020, CAN 3431 of 2020, CAN 3432 of 2020, , CAN 3433 of 2020, CAN 3434 of 2020, , CAN 3435 of 2020
which have been filed by the parties but have not been listed todaywill appear on 9th July, 2020.
It is made clear that until the recalling application and other connected applications are heard out, the respondents/oil companies will not take any steps
by way of terminating the contracts with the petitioners or any other measures which may be detrimental to the interest of the petitioners.
The Oil Companies are given liberty to place relevant documents by way of an affidavit within ten days from date and serve copies to the concerned
parties well before the next date of hearing.
All the applications are disposed of.