In Brief
Gujarat State Disaster Management Authority (a public sector undertaking) challenged a Rs. 105 crore arbitral award in favour of a supplier under the MSME Act, 2006. The key legal issue was whether courts have discretion to waive or reduce the mandatory 75% pre-deposit requirement under Section 19 of the MSME Act before entertaining applications to set aside awards. The Supreme Court held that the 75% pre-deposit is mandatory and cannot be waived, but courts may allow payment in instalments to mitigate hardship. The Court maintained its earlier interim order directing deposit of Rs. 2.5 crore rather than the full 75%, pending the appellate judgment's pronouncement.
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