An award passed under the MSMED Act, 2006, includes statutory interest as per Section 16, even if the specific interest amount is not explicitly calculated in the award document, provided the statutory provision is referenced.

1. Heard Sri Sanjay Agrawal, learned counsel appearing for the petitioner and Sri Amod Tripathi, learned counsel appearing for the respondent no.

2.

2. By means of this petition filed under Article 226 of the Constitution, petitioner has questioned the order passed by the Presiding Judge, Commercial Court, Meerut dated 20th March, 2026 whereby his application to deposit 75% of the award, vide application no. 33C, has come to be rejected on the ground that petitioner did not deposit 75% of the award taking the interest also as part of the award.

3. It is sought to be contended by Sri Sanjay Agarwal, learned counsel appearing for the petitioner that the final award that was passed by the MSME Council included only the principal amount of Rs. 32,23,968/- whereas no interest was added thereto, though the interest should have been calculated at the rate of 18% in terms of Section 16 of the MSMED Act, 2006.

4. Per contra, it is submitted by Sri Amod Tripathi, learned counsel for respondent no. 2 that the award means not only the principal amount but the interest also and even if the Council finally did not calculate the interest, it is a statutory interest which can be calculated and the petitioner is required to pay the amount accordingly.

5. Having heard learned counsel for the respective parties and having perused the records, we find that the operative portion records as under :

"The reference is hereby allowed. The respondent-buyer/opposite party shall pay Rs. 32,23,968/-+interest Rs........... u/s 16 of MSMED Act, 2006, total Rs............to the applicant-claimant/supplier till the date of order. The amount paid by the respondent-buyer/opposite party, if any during pendency of the reference shall be deducted from the "Amount Due".

The respondent-buyer/opposite party shall also pay future interest to the applicant/supplier as per provisions of section-16 of MSMED Act, 2006 till the final payment.

Parties to bear their own costs.

This award is made accordingly.

The order made on 13.03.2024 and draft approved on 05.07.2024."

6. Though we find that the interest part column is blank as the interest has not been calculated but finally the Council records this award is made accordingly. This award is made accordingly is a phrase and expression which includes the principal amount abovestated plus interest. Statutory interest is 16% under Section 16 of the Act and, therefore, it can be easily calculated.

7. Thus, we do not find any merit in the submission advanced by Sri Sanjay Agarwal and we uphold the order passed by the Presiding Judge, Commercial Court, Meerut dated 20th March, 2026.

8. At this Stage, counsel for the petitioner submits that he may be granted some more time so that he may deposit 75% of the total award amount including interest in compliance of the order of this Court.

9. Counsel for the respondent does not have any objection.

10. In view of the above, petitioner is directed to make deposit of 75% of the entire award through a demand draft which will include principal amount as well as statutory interest within four weeks from today on or before 30th May, 2026.

11. It is made clear that if the petitioner complies with this order, no recovery proceedings shall be pursued.

12. It is also made clear that if the aforesaid deposit is not made as directed hereinabove, no further time extension application shall be entertained and the recovery proceedings shall be pursued in accordance with law.

13. With the aforesaid observations/d