The Goa Micro and Small Enterprises Facilitation Council, functioning as an arbitral tribunal, has dismissed a claim filed by a construction firm seeking statutory interest from the Goa Electricity Department over alleged delayed payments related to a public works contract executed in 2020.
The dispute pertained to the construction of a compound wall, for which the contractor sought an arbitral award directing the department to pay ₹1,98,454 as interest on delayed payments.
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According to the claim, the contractor sought statutory interest calculated at 20.25 per cent per annum, contending that the amount was payable under the applicable provisions governing payments to micro and small enterprises.
After considering the matter, the Goa Micro and Small Enterprises Facilitation Council rejected the claim, declining to grant the interest sought by the construction firm.
The ruling brings to a close the arbitration proceedings initiated by the contractor against the Goa Electricity Department over the payment dispute arising from the 2020 project.
The decision highlights the role of the Facilitation Council in adjudicating commercial disputes involving micro and small enterprises while acting as an arbitral tribunal under the relevant legal framework.
