Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2006 (MSMED Act) – s.19 Micro Small and Medium Enterprise Development Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Micro, Small and Medium Enterprise Development Act, 2006 (MSMED Act) – s.19 – Parties governed by provisions of MSMED Act – Appellant preferred claim petition before Micro and Small Enterprises Facilitation Council constituted under the MSMED Act – On failure of conciliation, dispute referred to Arbitrator – Arbitrator, appointed through MSME Facilitation Council, passed award in favour of appellant – Appellant filed execution petition – Respondent No.1 filed application u/s.34 of the Arbitration Act for setting aside the arbitral award – Appellant submitted application u/s.19 of the MSMED Act for direction to respondent no.1-judgment debtor to deposit 75% of the arbitral award – Special Commercial Court allowed the application moved by appellant granting six weeks’ time to Respondent No.1 to deposit 75% of the arbitral award before its’ application u/s.34 of the Arbitration Act, could be entertained by the Court – Respondent No.1 filed appeal before High Court which permitted proceedings u/s.34 of the Arbitration Act to go on, without insisting for pre-deposit of 75% of the awarded amount – Whether pre-deposit of 75% of the awarded amount as per s.19 of the MSMED Act, while challenge to the award u/s.34 of the Arbitration Act is made mandatory or not – Held: Requirement of deposit of 75% of the amount in terms of the award as a predeposit as per s.19 of the MSMED Act, is mandatory – However, 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 court may allow the pre-deposit to be made in installments – Unless and until respondent No.1 deposits 75% of the awarded amount, its application u/s.34 of the Arbitration Act, challenging the award not to be entertained and decided on merits and, in that case, the execution proceedings to continue – Arbitration and Conciliation Act, 1996 – s.34. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2022 INSC 439 |
Petitioner | M/s Tirupati Steels |
Respondent | M/s Shubh Industrial Component & Anr. |
SCR | [2022] 3 S.C.R. 356 |
Judgement Date | 2022-04-19 |
Case Number | 2941 |
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