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TMI Blog2021 (10) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit of 75% of the awarded amount as a pre-deposit while preferring the application/appeal for setting aside the award, it has to be held that the requirement of deposit of 75% of the awarded amount as a predeposit is mandatory. Therefore, as such, both the High Court as well as the learned Additional District Judge (Commercial), Dehradun were justified in directing the appellant to deposit 75% of the awarded amount as a pre-deposit. The question posed is answered against the appellant. - CIVIL APPEAL NO. 6252 OF 2021 - - - Dated:- 8-10-2021 - M. R. SHAH And A. S. BOPANNA , JJ. For the Appellant : Mr. Ajay Kumar, AOR Mr. Pinakin M. Raval, Adv. Mr. Ashish Chaubey, Adv. Mr. Subrata Ray, Adv. For the Respondent : Mr. Jitender Chaudhary, Adv. Ms. Shilpa Chohan, Adv. Mr. Rajesh Singh, AOR JUDGMENT M.R. SHAH, J. 1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 26.09.2019 passed by the High Court of Uttarakhand at Nainital in Writ Petition (MS) No. 2708/2019, by which the High Court has dismissed the said writ petition and has confirmed the order passed by the learned Additional District Judge (Commercial), Dehradun in Mis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rores Fifty lakhs) before the appellate authority and on such deposit the learned appellate Court was directed to take up the appeal on file and proceed with the same. It is stated that pursuant to the said order, the appellant has deposited a sum of ₹ 2,50,00,000/- (Rs. Two Crores Fifty Lakhs) and thereafter the learned appellate authority - Additional District Judge (Commercial), Dehradun has heard the appeal/application under Section 34 of the Arbitration Conciliation Act, 1996 read with Section 19 of the MSME Act, 2006 and the order is to be pronounced on 12.10.2021. Therefore, it is prayed to dispose of the present appeal. 7. Learned Advocate appearing on behalf of the respondent has submitted that, as such, it is mandatory to deposit 75% of the awarded amount as a pre-deposit at the time when the appeal/application under Section 34 of the Arbitration Conciliation Act, 1996 read with Section 19 of the MSME Act, 2006 is preferred. It is submitted that what is directed to deposit vide ex-parte order dated 23.10.2019 is not even 25% of the amount awarded. It is submitted that the question involved in the present appeal is a pure question of law and therefore the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposited with it seventy-five per cent of the amount in terms of the decree, award or, as the case may be, the other order in the manner directed by such court: Provided that pending disposal of the application to set aside the decree, award or order, the court shall order that such percentage of the amount deposited shall be paid to the supplier, as it considers reasonable under the circumstances of the case, subject to such conditions as it deems necessary to impose. (bold words are ours) 9.2 On a plain/fair reading of Section 19 of the MSME Act, 2006, reproduced hereinabove, at the time/before entertaining the application for setting aside the award made under Section 34 of the Arbitration Conciliation Act, the applicant/appellant has to deposit 75% of the amount in terms of the award as a pre-deposit. The requirement of deposit of 75% of the amount in terms of the award as a pre-deposit is mandatory. However, at the same time, considering the hardship which may be projected before the appellate court and if the appellate court is satisfied that there shall be undue hardship caused to the appellant/applicant to deposit 75% of the awarded amount as a predepo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to be made, if felt necessary, in instalments. 11. In view of the above and considering the language used in Section 19 of the MSME Act, 2006 and the object and purpose of providing deposit of 75% of the awarded amount as a pre-deposit while preferring the application/appeal for setting aside the award, it has to be held that the requirement of deposit of 75% of the awarded amount as a predeposit is mandatory. Therefore, as such, both the High Court as well as the learned Additional District Judge (Commercial), Dehradun were justified in directing the appellant to deposit 75% of the awarded amount as a pre-deposit. However, at the same time, considering the fact that while issuing notice in the present proceedings on 23.10.2019, this Court passed the following order: Permission to file the special leave petition is granted. In an appeal filed by the petitioner-Gujarat State Disaster Management Authority, a Public Sector Undertaking of the State of Gujarat, challenging the award passed under the Micro, Small and Medium Enterprises Development Act, 2006 by the Facilitation Council, pursuant to Section 19 of the said Act the petitioner-Authority was directed to d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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