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Madhya Pradesh High Court · body

2011 DIGILAW 68 (MP)

Orient Paper Mill Ltd. v. Bang Lime Industries

2011-01-17

AJIT SINGH, SANJAY YADAV

body2011
ORDER Ajit Singh, J. 1. This petition, under Article 227 of the Constitution, is directed against the order dated 29.7.2010, Annexure P-6, passed in Arbitration Case No. 22/2009 by the Sixth Additional District Judge, Bhopal, whereby he has dismissed the Petitioner's application for exemption from payment of 75% of the amount awarded. 2. The Respondent filed an application against the Petitioner for recovery of Rs. 16,26,678/- as interest before the Madhya Pradesh Micro, Small Enterprises Felicitation Council, Bhopal. The amount claimed was in respect of interest for the delay in payment of the lime supplied to the Petitioner. The Felicitation Council, after hearing the parties, passed an award dated 28.11.2008 directing the Petitioner to pay Rs. 59.08 lac to the Respondent. The Petitioner has challenged the award before the VIth Additional District Judge, Bhopal, by filing an application under Section 34 of the Arbitration and Conciliation Act, 1996. The Petitioner also filed an application for exemption from payment of 75% of the amount awarded as provided under Section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 (in short, "the Act"). This application was objected by the Respondent. The court below, after hearing both the parties and relying upon the Division Bench decision of this Court in M/s. R.S. Avtar Singh v. Vindyachal Air Products 2009 (5) M.P.H.T. 380 by the impugned order has dismissed the application. 3. It is to be noted that Section 19 of the Act came up for consideration before the Division Bench in M/s. R.S. Avtar Singh (Supra) wherein it has been held that the requirement to deposit 75% of the amount in terms of the decree, award or the order, as the case may be, is mandatory before entertaining an application for setting aside that decree, award or order. 4. It is argued by the learned senior counsel appearing for Petitioner that Section 19 of the Act has not been correctly interpreted in M/s. R.S. Avtar Singh and it requires reconsideration. According to him, the words "or, as the case may be, the other order in the manner directed by such Court" indicates that the court is empowered with the discretion to do away with the requirement of depositing 75% of the amount in terms of the decree, award or the other order. According to him, the words "or, as the case may be, the other order in the manner directed by such Court" indicates that the court is empowered with the discretion to do away with the requirement of depositing 75% of the amount in terms of the decree, award or the other order. The Learned Counsel for Respondent, on the other hand, submitted that the view taken in M/s. R.S. Avtar Singh is correct and does not require any further consideration. 5. Section 19 of the Act reads as under: 19. Application for setting aside decree, award or order.- No application for setting aside any decree, award or other order made either by the Council itself or by an institution or centre providing alternative dispute resolution services to which a reference is made by the Council, shall be entertained by any Court unless the Appellant (not being a supplier) has deposited with it seventy-five per cent of the amount in terms of the decree, award or, as the case may be, the other order in the manner directed by such Court: Provided that pending disposal of the application to set aside the decree, award or order, the Court shall order that such percentage of the amount deposited shall be paid to the supplier, as it considers reasonable under the circumstances of the case subject to such conditions as it deems necessary to impose. 6. A bare reading of the above quoted section makes it clear that the expression "or, as the case may be, the other order" refers to the words "any decree, award or the other order" occurring in the beginning of section. The requirement of depositing 75% of the amount in terms of the decree, award or other order as the case may be is, therefore, mandatory and the court can only direct the manner in which the amount of 75% has to Be deposited. The court may, in suitable cases, give the Appellant time for depositing the amount after filing of the appeal but the appeal would be entertained or admitted for hearing only when total 75% of the amount of any decree, award or the other order, as the case may be, is deposited. Thus, we also agree with the interpretation of Section 19 given in the case of M/s. M.S. Avtar Singh. Thus, we also agree with the interpretation of Section 19 given in the case of M/s. M.S. Avtar Singh. Deposit of 75% of the amount awarded being the mandatory requirement, we hold that the court below has rightly dismissed the Petitioner's application for exemption from depositing the amount. 7. The petition has no merit. It is accordingly dismissed.