Before The Hon’ble Sole Arbitrator Shri Balbir Singh
In The Matter of :
Arbitration under Micro , Small and Medium Enterprises Act of 2006 in Case No 2435 of 2021.
Between
M/s Dialyma SCO 30 , Near OBC Bank , Sector 11, Panchkula
.…………………………..(Claimant)
Vs
M/s Virola Shoes Pvt Ltd, plot no 21/68 , Freeganj , Near Civil Lines Agra , Uttar Pradesh
………………………….(Respondent)
Arbitration Claim Petition of Claimant
May It Please Your Honour:
It is respectfully submitted as under:
1. That, the applicant is a firm under the name and style of M/s Dialyma (hereinafter
referred to as claimant), rendering services in web & software development, graphic
design etc.
2. That the claimant provided the service of web and software development to M/s Virola
Shoes Pvt. Ltd. (hereinafter referred to as respondent) .
3. That, the respondent hired the services of claimant for the first time in the year 2017 for
development of software (ERP) in terms of work order SIASPL/PR/ 2017/014. Work was
to be completed in 4 phases at an estimated cost of 10 lakhs. Amount of Rs 2,18,500
was to be paid by the respondent after the completion of the first phase of the work in
terms of the work order agreement before work on the second phase would start.
However, respondent did not pay the amount due to claimant, as a result work on
second phase could not commence.
4. That, the claimant completed the work assigned and accordingly sent the INVOICE
NUMBER 1083 , DUE DATE 31.03.2017 for the amount of 2,18,500. However,
respondent did not pay any heed to the invoice.
5. That, the Claimant made repeated requests and tried to contact respondent many times
to pay the remaining amount but every time respondent avoided claimant without any
response. However, after some time respondent contacted claimant again. Claimant
requested the respondent to clear his pending invoice first and again sent him INVOICE
NUMBER 1083 DUE DATE 30.04.2018. But respondent did not clear the amount due on
him and again became incommunicado, without any response to the claimant.
6. That, in March 2020, respondent again hired the claimant for development and
deployment of upgraded version of ERP (software) as per work order
SoW_Odoo13_VirolaShoes dated 19.03.2020
7. That, claimant completed his work and accordingly sent an invoice bearing INVOICE
NUMBER AUG20-004 DATED 14.08.2020 to the tune of Rs 3,12,700#. This invoice was
the final amount due on the buyer.
8. That, the software was deployed on the server and respondent has been using the same
since then without paying the amount due.
9. That, since respondent did not clear the invoices due, claimant made repeated requests
to the buyer to clear the dues and E-mailed him about the same but unfortunately there
was no response from the buyer. Claimant was finally able to connect with the
respondent but the respondent categorically stated that they will not be able to make
any payments, without assigning any valid reason to the claimant.
10. That , the claimant , left with no other option , approached the MSME forum to recover
the money due to claimant from the respondent.
11. That , the Claimant filed a complaint on MSME portal and the case was referred to
Haryana Micro and Small Enterprises Facilitation Council(hereinafter referred to as
HMSEFC) for conciliation proceedings between Claimant and the Respondent in terms
of Sec 20 of the MSME Act .
12. The first meeting of the council was convened on 04.08.2021 . However , the
respondent did not appear for the conciliation proceedings without any reason .
13. That , Haryana Micro and Small Enterprises Facilitation Council, referred the matter for
arbitration proceedings before your honour in terms of letter dated 01.12.2021.
REQUEST FOR RELIEF
For the reasons set out in this Notice of Arbitration, Claimant requests that the Tribunal
render an award:
a. declaring that respondent has breached his obligations and denied the claimant of his
legally entitled money
b. ordering that the respondent pays discharges his obligation and pays the claimant his
legally entitled money amounting to the tune of Rs 5,31,200 only.
c. ordering that the respondent pays compound interest on the compensation ordered
at a rate of 18% .
d. ordering that the respondent pays all the costs incurred in relation to the
proceedings,
including attorneys' fees and expenses, and the costs of the arbitration, and
compound interest on all such costs; and
e. ordering such other relief as the Tribunal may deem appropriate.
List of Documents Relied Upon By The Claimant in Support of His Petition:
a. Copy of Work orders agreed by Claimant and Respondent.
b. Copy of Invoice Number 1083 , Due Date 31.03.2017 and 30.04.2018.
c. Copy of Invoice Number AUG20-004 DATED 14.08.2020.
d. Copy of MSME Application submitted to HMSEFC
e. Copy of payment sheet submitted to HMSEFC.
f. Copy of Notice issued by HMSEFC .
g. Any other document as may be required in course of proceedings.
