Requirement to deposit 75% of the awarded amount as a pre-deposit is mandatory - Court can allow the deposit to be made in instalments.

Whether the requirement to deposit 75% of the awarded amount as a pre-deposit is mandatory in terms of Section 19 of the MSMED Act?

Gujarat State Disaster Management Authority v. M/s Aska Equipments Ltd. (Judgment dated 08.10.2021 in CIVIL APPEAL NO. 6252/2021)

The Supreme Court reiterated that the deposit of 75% awarded amount is sine qua non for filing a Section 34 application. However, the appellate court if satisfied that such a deposit would cause undue hardship to the appellant, can allow the deposit to be made in instalments.