9911796707
TMI Blog2022 (4) TMI 981X X X X Extracts X X X X X X X X Extracts X X X X ..... o as the 'MSMED Act, 2006'), the Division Bench of the High Court has directed the first appellate court to proceed under section 34 of the Arbitration Act, 1996 without insistence for making predeposit of 75% of the awarded amount, the judgment creditor has preferred the present appeal. 2. The parties are governed by the provisions of the MSMED Act, 2006. The appellant herein preferred a claim petition before the Micro and Small Enterprises Facilitation Council constituted under the MSMED Act, 2006 for recovery of Rs. 1,40,13,053/and interest amounting to Rs. 1,32,20,100/which comes to a total amounting to Rs. 2,72,33,153/. On the failure of conciliation, the dispute was referred to the Arbitrator. The Arbitrator, appointed through the MS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mar Singla and another Vs. Union of India and others), by which, the Division Bench, while upholding the vires of section 19 of the MSMED Act, 2006, held that the pre-deposit of 75% of the arbitral award under section 19 of the MSMED Act, 2006 is directory and not mandatory, has permitted the proceedings under section 34 of the Arbitration Act, 1996 to continue without insistence on making a predeposit of 75% of the awarded amount. Feeling aggrieved and dissatisfied with the impugned order passed by the Division Bench of the High Court permitting the proceedings under section 34 of the Arbitration Act, 1996, to go on without insistence for making pre-deposit of 75% of the awarded amount, the appellant herein - original judgment creditor has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, it is observed and held as under: " 13. 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 and Conciliation Act, the appellant applicant 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 pre-deposit at a time, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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