In Brief
Tirupati Steels obtained an arbitral award for over Rs. 2.72 crore against Shubh Industrial Component under the MSME Act. When the respondent challenged the award under Section 34 of the Arbitration Act, the High Court allowed the challenge to proceed without requiring pre-deposit of 75% of the award amount. The Supreme Court held that such pre-deposit is mandatory under Section 19 of the MSME Act, though courts may permit instalmental deposits in cases of genuine hardship. The High Court's order was quashed, and the respondent was directed to deposit 75% before its challenge could be entertained.
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