RULES SUPPLEMENT TO PART - I

EXTRAORDINARY

OF

THE TELANGANA GAZETTE

PUBLISHED BY AUTHORITY

No.10-A] HYDERABAD, MONDAY, MAY 16, 2022.

NOTIFICATIONS BY GOVERNMENT

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INDUSTRIES & COMMERCE DEPARTMENT

(FP&MSME)

THE TELANGANA MICRO, SMALL AND MEDIUM ENTERPRISES

INSTITUTIONAL CONCILIATION AND ARBITRATION RULES,

2022.

[G.O.Ms.No.32, Industries & Commerce (FP&MSME),

16^th May, 2022.]

In exercise of the powers conferred by section 30 of the Micro,

Small and Medium Enterprises Development Act, 2006 (Central Act 27

of 2006), the Government of Telangana, hereby makes the following

rules, namely:-

RULES

1. Short Title and Commencement:

(1)

These rules may be called the Telangana Micro, Small and Medium

Enterprise’s Institutional Conciliation and Arbitration Rules, 2022.

R.N.I. No. TELMUL/2016/73158.

[Price: `

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HSE No. 1051/2020-2022.

G-134.

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TELANGANA GAZETTE EXTRAORDINARY

[Part-I

(2)

These rules shall come into force on the 16^th day of May, 2022.

2. Definitions:

(1)

In these Rules, unless the context otherwise requires :-

(a)

“Act” means the Micro, Small and Medium Enterprises

Development Act, 2006 (Central Act 27 of 2006);

(b)

“A&C Act” means the Arbitration and Conciliation Act, 1996

(Central Act 26 of 1996);

(c)

“Facilitation Council” means The Micro, Small and Medium

Enterprises Facilitation Councils established under section 20 of

the said Act;

(d)

“The International Arbitration and Mediation Centre, Hyderabad”

or “IAMCH” means the mediation and arbitration Centre

established by the International Arbitration and Mediation Centre

Trust, Hyderabad;

(e)

“IAMC Rules of Arbitration” means the most recent Rules of

Arbitration published on the website of the IAMCH;

(f)

“IAMC Rules of Conciliation/Mediation” means the most recent

Rules of Conciliation/Mediation published on the website of the

IAMCH;

(2)

Words and expressions used and not defined in these rules but

defined in the Act shall have the meanings respectively assigned

to them in the Act;

3. Reference to the IAMCH by Facilitation Councils:-

(1)

Where a reference of a dispute involving a claim of more than Rupees

Three Crores made to the Micro and Small Enterprises Facilitation

Council under Section 18 of the Act remains unresolved / undecided

for a period of 90 days from the date of making a reference as

provided under sub-section (5) of Section 18 of the Act, the

Facilitation Council shall refer such dispute:

(i)

for conciliation under sub-section (2) of Section 18 of the Act, to

the International Arbitration and Mediation Centre,Hyderabad,for

conciliation, where the Facilitation Council has not conducted

conciliation in regard to such dispute; or

(ii)

for arbitration under sub-section (3) of Section 18 of the Act to the

May 16, 2022]

RULES SUPPLEMENT

3

International Arbitration and Mediation Centre, Hyderabad, for

arbitration where the conciliation held by the Facilitation Council

has not resulted in a settlement of resolution of dispute.

2)

Where the reference by the Facilitation Council is for conciliation,

the reference shall be deemed to be a request by the parties to

enlist the assistance of IAMCH for appointment of conciliator under

clause (a) of sub-section (2) of Section 64 the A&C Act and the

person recommended by IAMCH shall be deemed to be the

Conciliator appointed under clause (a) of sub-section (1) Section 64

of the A&C Act; and such conciliator shall conduct the conciliation

in accordance with Sections 65 to 81 of the A&C Act. Such

conciliation shall be governed by IAMC Rules of Conciliation/

Mediation in so far as they are not inconsistent with the provisions

of the A&C Act.

(3)

Where a conciliation referred under Rule 3 (l) (i) does not end in

Settlement / resolution of the dispute, IAMCH shall refer the matter

to arbitration under the IAMC Rules of Arbitration and such a

reference shall be treated as a reference to arbitration by the parties:

Provided that a Facilitation Council may also refer a dispute to

IAMCH even prior to the expiry of the 90 days period referred to in

sub-section (5) Section 18 of the Act in case the Facilitation Council is of the

view that having regard to the complexities of dispute in question the same is

not likely to be disposed of within a period of 90 days.

JAYESH RANJAN,

Principal Secretary to Government & CIP (FAC).

Printed and Published by the Commissioner of Printing, Govt. of Telangana,

at Govt. Central Press, Chanchalguda, Hyderabad.

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