In Brief
Gujarat State Disaster Management Authority, a public sector undertaking, challenged a Facilitation Council award of Rs. 105 crores to supplier Aska Equipments Limited under the MSME Act, 2006. The appellant was required to deposit 75% of the award as pre-deposit before filing an appeal under Section 34 of the Arbitration Act, 1996. The Supreme Court held that this 75% pre-deposit requirement is mandatory and courts cannot waive it. However, courts may allow instalmental payments if undue hardship results. The Court disposed the appeal but continued the interim arrangement of Rs. 2.5 crore deposit made when notice was issued, pending final judgment on the merits by the lower court.
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