MSME - Setting aside of award - Pre-de- posit of amount - Since for entertaining application u/S. 34 of Act of 1996, condi- tion of pre-deposit of 75% amount is man- datory, rejection of application seeking waiver was proper.

Citation 

AIR 2024 ALLAHABAD 156

: AIROnline 2024 ALL 494

(LUCKNOW BENCH) ARUN BHANSALI, C.J. AND JASPREET SINGH, J.

M/s. Docket Care Systems Thru Partner Pankaj Kumar Agarwal v. M/s. Hariwill Elec- tronics India Pvt. Ltd.

Appeal under Section 37 of Arbitration And Conciliation Act 1996 No. 29 of 2024, D/- 19- 4-2024.

Arbitration and Conciliation Act (26 of 1996), S. 34- Micro, Small and Medium Enterprises Development Act (27 of 2006), S. 19- Setting aside of award - Pre-de- posit of amount - Since for entertaining application u/S. 34 of Act of 1996, condi- tion of pre-deposit of 75% amount is man- datory, rejection of application seeking waiver was proper - However, while dis- missing application court granted time to deposit amount and directed that on fail- ure to deposit said amount, proceedings shall stand dismissed - By passing such order, Commercial Court deprived itself of exercising powers u/S. 19 of MSME Act, 2006, to impose such conditions as it deems necessary - Order was set aside to extent it directed that failure to deposit the amount within stipulated period will result in dismissal of proceedings - Appellant was directed to deposit amount by given date failing which commercial court would pass appropriate orders.