Statutory pre-deposit under MSMED law required before Section 34 objections can be heard on merits; limited time granted to comply.

Section 19 of the Micro, Small & Medium Enterprises Development Act, 2006 required a statutory pre-deposit before the petitioner's Section 34 objections under the Arbitration & Conciliation Act, 1996 could be heard on merits. The Court held that the amount already deposited was stated to be below the statutory requirement and, for that reason, the objections had not yet been examined substantively. One further opportunity was granted to make the deposit within fifteen days from the District Judge's determination of the required amount. Only on compliance could the petitioner seek adjudication on merits; failing deposit, the respondent's execution petition could proceed without impediment.

---

---

Issues: Whether the petitioner should be afforded a further opportunity to make the statutory deposit under Section 19 of the Micro, Small & Medium Enterprises Development Act, 2006 so that its objections under Section 34 of the Arbitration & Conciliation Act, 1996 may be adjudicated on merits, and what consequence would follow on failure to deposit within time.

Analysis: The order proceeds on the basis that the amount already deposited was stated to be less than the statutory requirement under Section 19 of the Micro, Small & Medium Enterprises Development Act, 2006, and for that reason the objections under Section 34 of the Arbitration & Conciliation Act, 1996 had not been examined on merits. The Court granted one further opportunity to the petitioner to make the deposit within fifteen days from the District Judge's determination of the required amount. It was further directed that only upon compliance could the petitioner insist on a determination on merits, while failure to deposit would permit the respondent's execution petition to proceed without impediment.

Conclusion: The petitioner was granted a limited further opportunity to comply with the statutory pre-deposit requirement, and the matter was otherwise left to proceed according to whether the deposit was made within the stipulated time.

---