2017 (1) TMI 1664 - SC - Indian Laws

Pre-deposit - Calculation of awarded amount - HELD THAT - It is apparent, that on account of the amount deposited, which was stated to be less than the one contemplated under Section 19 of the Micro, Small Medium Enterprises Development Act, 2006, the objections raised by the petitioner have not been dealt with by the District Judge under Section 34 of the Arbitration Conciliation Act, 1996, on merits - one further opportunity should be afforded to the petitioner, to make such deposit within 15 days, from the determination, of the deposit amount (under Section 19, a fore-mentioned) by the District Judge, in consonance with the order of the High Court dated 29th January, 2016.

Summary

Issues:
1. Interpretation of calculation of 75% of the awarded amount
2. Non-dealing of objections by District Judge under Section 34 of the Arbitration & Conciliation Act, 1996, due to insufficient deposit
3. Affording further opportunity to petitioner for deposit as per Section 19 of the Micro, Small & Medium Enterprises Development Act, 2006
4. Consequences of failure to make the deposit within the specified time
5. Revival of execution petition after deposit and adjudication on merits by District Judge
6. Disposal of special leave petition and connected applications
7. Vacation of orders passed by executing court
8. Provision for respondent to seek premature payment of deposits

Analysis:
1. The High Court directed parties to submit calculations regarding 75% of the awarded amount, emphasizing compliance with the award dated 21.6.2010. The court decided that failure to deposit 75% within the specified time would lead to dismissal of objections, highlighting the need for accurate calculations and compliance.

2. The District Judge did not address the objections raised by the petitioner under Section 34 of the Arbitration & Conciliation Act, 1996, due to an insufficient deposit compared to the requirement set by the Micro, Small & Medium Enterprises Development Act, 2006. This non-compliance hindered the proper consideration of the petitioner's objections on merits.

3. The Supreme Court granted the petitioner an additional 15 days to make the necessary deposit as per Section 19, aligning with the High Court's order. This extension aimed to facilitate compliance and ensure a fair opportunity for the petitioner to meet the deposit requirements.

4. Failure to make the deposit within the stipulated time would allow the execution petition to proceed without hindrance. The consequences of non-compliance were clearly outlined, indicating the importance of timely adherence to the court's directives.

5. Upon successful deposit within the specified timeframe, the execution petition would only resume after the District Judge's examination of the matter on its merits under Section 34 of the Arbitration & Conciliation Act, 1996. This process ensured a thorough review before further execution steps.

6. The special leave petition and related applications were disposed of by the Supreme Court, indicating a resolution of the immediate legal matters under consideration.

7. All previous orders issued by the executing court were deemed vacated, signaling a fresh start following the Supreme Court's directives and decisions.

8. The judgment allowed the respondent the option to seek premature payment of deposits made before the District Judge, providing a mechanism for potential adjustments or early resolution if deemed necessary by the respondent.