GUJARAT STATE DISASTER MANAGEMENT AUTHORITY versus M/S ASKA EQUIPMENTS LIMITED

Citation: [2021] 8 S.C.R. 720 · Decided: 08-10-2021 · Supreme Court of India · Bench: M.R. SHAH · Disposal: Disposed off
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Judgment (excerpt)

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SUPREME COURT REPORTS
[2021] 8 S.C.R.
[2021] 8 S.C.R. 720
720
GUJARAT STATE DISASTER MANAGEMENT AUTHORITY
v.
M/S ASKA EQUIPMENTS LIMITED
(Civil Appeal No. 6252 of 2021)
OCTOBER 08, 2021
[M. R. SHAH AND A. S. BOPANNA, JJ.]
Micro, Small and Medium Enterprises Development Act, 2006
– s.19 – Goods taken by appellant – Dispute regarding payment of
– Award passed by Facilitation Council in favour of the respondent,
appellant directed to pay Rs. 105,053,387/- – Challenged by
appellant by filing application u/s.34, 1996 Act r/w s.19 – Directed
to deposit 75% of the awarded amount in terms of s.19 – Several
opportunities granted – Application for waiver, dismissed – Appellant
granted last opportunity to deposit the said amount – Challenged –
Writ petition dismissed – On appeal, held: Requirement of deposit
of 75% of the awarded amount as a pre-deposit is mandatory –
Both the courts below were justified in directing the appellant to
deposit 75% of the awarded amount as a pre-deposit – Arbitration
and Conciliation Act, 1996 – s.34.
Disposing of the appeal, the Court
HELD: 1.1 On a plain/fair reading of Section 19 of the
MSME Act, 2006, at the time/before entertaining the application
for setting aside the award made under 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 pre- deposit at a time,
the court may allow the pre-deposit to be made in instalments.
Therefore, as such, both the High Court as well as the learned
Additional District Judge (Commercial), Dehradun were justified
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in directing the appellant to deposit 75% of the awarded amount
as a pre-deposit. However, while issuing notice in the present
proceedings on 23.10.2019, this Court directed the appellant to
deposit Rs. 2,50,00,000/- (Rupees Two Crores Fifty Lakhs) and
on such deposit the District and Sessions Judge, Dehradun was
directed to take up the appeal on file and proceed with the same.
It is reported that by now the application/appeal has been heard
and the order is to be pronounced on 12.10.2021. The
arrangement as per order dated 23.10.2019 is continued with till
final disposal of the appeal/application under Section 34 of the
Arbitration & Conciliation Act, 1996 read with Section 19 of the
MSME Act, 2006, which shall not be treated as a precedent.
[Paras 9.2, 11 and 12][724-D-F; 725-G-H; 727-B-C]
CIVIL APPELLATE JURISDICTION: Civil Appeal No.6252 of
2021
From the Judgment and Order dated 26.09.2019 of the High Court
of Uttarakhand at Nainital in Writ  Petition (MS) No.2708 of 2019.
Ajay Kumar, Pinakin Ravaal, Subrata Ray, Ashish Chaubey, Advs.
for the Appellant.
Jitender Chaudhary, Rajesh Singh, Advs. for the Respondent.
The Judgment of the Court was delivered by
M. R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 26.09.2019 passed by the High Court of Uttarakhand at
Nainital in Writ Petition (MS) No. 2708/2019, by which the High Court
has dismissed the said writ petition 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
GUJARAT STATE DISASTER MANAGEMENT AUTHORITY v.  M/S
ASKA EQUIPMENTS LTD.
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SUPREME COURT REPORTS
[2021] 8 S.C.R.
18 of the MSME Act, 2006 commenced.  The Facilitation Council passed
an award dated 10.11.2017 in favour of the respondent herein and directed
the appellant to pay a sum of Rs. 105,053,387/- (Rs. Ten crores Fifty
Lakhs Fifty Three Thousand Three Hundred and Eighty Seven only).
3. Feeling aggrieved by t
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