Back
GURVINDER SINGH GILL
Twenty 4 Ventures Group Ltd. – Appellant
Versus
Haryana State Micro and Small Enterprises Facilitation Council – Respondent
JUDGMENT
Mr. Gurvinder Singh Gill, J.
The petitioners assail order dated 30.8.2023 (Annexure P-1) passed by learned Additional District Judge, Chandigarh vide which an application moved by the petitioners, seeking exemption from compliance of requirement of depositing 75% of the award amount in terms of section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 (in short hereinafter referred to as 'the MSMED Act, 2006'), has been declined.
2. Admittedly, respondent No. 3 - M/s Servista Facility Solutions, having Sh. Gagan Gauri as its sole proprietor, had entered into a contract with respondent No. 4 - M/s Pro Facilities Services Pvt. Ltd. on 15.4.2017, as per which respondent no. 3 was to provide security services to respondent no. 4. A dispute having arisen, respondent No. 3 sought recovery of outstanding amount of Rs. 1,14,35,652/- and an interest amount of Rs. 1,24,80,648/- from respondent No. 4 by invoking provisions of Section 16 and 18 of the MSMED Act, 2006. The Council constituted under the MSMED Act, 2006 issued notice to respondent No. 4 who did not file any response despite several opportunities having been afforded. The claimant informed the Council th
The requirement of depositing 75% of the awarded amount under Section 19 of the MSMED Act is mandatory for parties challenging an arbitration award, independent of their claims regarding involvement ....
The mandatory deposit requirement under Section 19 of the MSMED Act must be fulfilled before entertaining applications to set aside arbitration awards, ensuring fairness to MSMEs and compliance with ....
An application under Section 34 of the Arbitration and Conciliation Act cannot be entertained without the pre-deposit of 75% of the awarded amount as mandated by Section 19 of the MSMED Act.
Jurisdictional challenges to arbitration awards must be raised under Section 34 of the Arbitration Act, and the pre-deposit requirement under Section 19 of the MSME Act is mandatory.
The mandatory pre-deposit requirement under Section 19 of the MSMED Act, 2006 for challenging an award and the overriding effect of the MSMED Act, 2006 over the Arbitration Act, 1996 in specific disp....
Point of Law : Arbitration Award - Having specifically found that the petitioner/buyer failed to make payment of the outstanding amount to the respondent/supplier in respect of at least six of the ei....
Mandatory pre-deposit under Section 19 of the Act is essential for challenging awards; courts may extend time for compliance, ensuring access to effective adjudication based on merits.
The main legal point established is that while a pre-deposit is mandatory under Section 19 of the MSMED Act, a petition under Section 34 of the Arbitration and Conciliation Act, 1996 can be filed wit....
If any registration under the MSMED Act is obtained, the same will be prospective and would apply to supply of goods and services subsequent to registration but cannot operate retrospectively. Accord....
The lack of conciliation does not undermine the statutory obligation to make payment under the MSMED Act, emphasizing the importance of adherence to payment timelines by the buyer.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
