Mandatory pre-deposit under MSME law remains binding; court discretion extends only to regulating disbursement, not waiving deposit.

Section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 requires deposit of seventy-five per cent of the awarded amount as a mandatory pre-condition for entertaining a challenge to an award or order. The phrase "in the manner directed by the Court" regulates only the mode of deposit, while the proviso allows the Court to control disbursement of the deposited amount to the supplier on reasonable terms; it does not permit waiver of the statutory pre-deposit. The challenge was therefore confined to modification of deposit and interim disbursement directions, while the deposit requirement remained binding.

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Issues: (i) Whether deposit of seventy-five per cent of the amount under section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 could be waived in an application to set aside an award or order.

Analysis: Section 19 was construed as making deposit of seventy-five per cent of the awarded amount a mandatory pre-condition for entertaining the challenge. The words "in the manner directed by the Court" were held to regulate the mode of deposit and not to dilute the statutory requirement itself. The proviso was treated as enabling the Court to regulate disbursement of the deposited amount to the supplier on such terms as the Court considers reasonable.

Conclusion: Waiver of the statutory deposit was declined, and the requirement of depositing seventy-five per cent of the amount was upheld.

Final Conclusion: The challenge succeeded only to the limited extent of modifying the order regarding deposit and interim disbursement, while the statutory pre-deposit condition remained binding.

Ratio Decidendi: The seventy-five per cent deposit mandated by section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 is a condition precedent to entertaining the challenge, and the Court's power under the proviso extends only to regulating disbursement of the deposited amount.

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