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Issues involved: Interpretation of deposit requirement u/s 34 of Arbitration and Conciliation Act, 1996 in relation to awards made by Industry Facilitation Council under repealed 1993 Act and subsequent Micro, Small and Medium Enterprises Development Act, 2006.
Summary: 1. The petitioner challenged an order directing deposit of awarded amount for setting aside an award made under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993. The respondent claimed ` 7,49,598 and interest, leading to the award. Petitioner objected to the deposit condition imposed by the District Judge for setting aside the award under Section 34 of the Arbitration and Conciliation Act, 1996. 2. The dispute was referred under Section 6(2) of the 1993 Act to the Industry Facilitation Council for arbitration, resulting in the award. The petitioner sought to set aside the award, contesting the deposit requirement. The 1993 Act was repealed by the Micro, Small and Medium Enterprises Development Act, 2006, which mandated depositing 75% of the awarded amount for setting aside a decree or award made by the Council. 3. The petitioner argued that Section 34 of the 1996 Act does not mandate any deposit for maintaining an application to set aside an award. However, a conjoint reading of the provisions of the 1996 Act, the repealed 1993 Act, and the subsequent 2006 Act clarifies that depositing 75% of the awarded amount is a prerequisite for entertaining an application to set aside an award by the Industry Facilitation Council. 4. The Court dismissed the writ petition, upholding the requirement of depositing 75% of the decreed amount by the petitioner as a condition for the court to proceed with the decision on the application to set aside the award. The deposit condition is deemed necessary in addition to the procedures outlined in Section 34 of the Arbitration and Conciliation Act, 1996.
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