TaxTMI 
TaxTMI 
2021 (10) TMI 480
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.... and has confirmed the order passed by the learned Additional District Judge (Commercial), Dehradun in Miscellaneous Application No. 150 of 2018, whereby the appellant herein was directed to deposit 75% of the awarded amount in terms of Section 19 of Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as the 'MSME Act, 2006'), the appellant herein - original appellant/applicant has preferred the present appeal. 2. That the parties are governed by the provisions of the MSME Act, 2006. A dispute arose between the parties regarding payment of goods which was taken by the appellant. The proceedings under Section 18 of the MSME Act, 2006 commenced. The Facilitation Council passed an award dated 10.11.2017 in favou....
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.... hearing, Shri Ajay Kumar, learned Advocate appearing on behalf of the appellant has submitted that in the present case while issuing notice on 23.10.2019, this Court directed the appellant to deposit a sum of Rs. 2,50,00,000/- (Rs. Two crores 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 Rs. 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 o....
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....-deposit to be made, if felt necessary, in instalments. It is submitted that otherwise the deposit of 75% as a pre-deposit is mandatory and the appellate court would have no discretion at all to deviate from the mandate under Section 19 of the MSME Act, 2006. 8. Learned counsel appearing on behalf of the appellant is not in a position to show any contrary decision to the decision of this Court in the case of Goodyear India Limited (supra). He is also not in a position to satisfy whether the appellate court would have any discretion to deviate from the requirement of deposit of 75% as a pre-deposit while preferring the appeal/application under Section 34 of the Arbitration & Conciliation Act read with Section 19 of the MSME Act, 2006. 9. W....
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....er 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 predeposit at a time, the court may allow the pre-deposit to be made in instalments. 10. An identical question came to be considered by this Court in the case of Goodyear India Limited (supra). In paragraphs 10 & 11, this Court observed and held....
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....ion Bench with regard to Section 19 of the 2006 Act. It may not be out of place to mention that the provisions of Section 19 of the 2006 Act, had been challenged before the Kerala High Court in Kerala SRTC v. Union of India [(2010) 1 KLT 65], where the same submissions were negated and, subsequently, the matter also came up to this Court, when the special leave petitions were dismissed, with leave to make the pre-deposit in the cases involved, within an extended period of ten weeks. We may also indicate that the expression "in the manner directed by such court" would, in our view, indicate the discretion given to the court to allow the pre-deposit to be made, if felt necessary, in instalments." 11. In view of the above and considering the....
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.... been paid to the respondentsupplier and hence there is no necessity to make pre-deposit for filing the appeal. Arguments advanced by learned senior counsel is on the merit of the matter. Having regard to the facts and circumstances and considering the fact that the petitioner-Authority is a Public Sector Undertaking, in exercise of the discretion vested with the court under Section of the said Act, we direct the petitioner-Authority to deposit Rs. 2,50,00,000/- before the Appellate Authority within a period of four weeks from today. On such deposit, the District and Sessions Judge, Dehradun, is directed to take up the appeal on file and proceed with the same. Issue notice to the respondent. On deposit of Rs. 2,50,00,000/- (Rupees ....