Writ Jurisdiction Cannot Be Invoked To Challenge Arbitral Award, Only To Circumvent Statutory Requirement Of S.19 Of MSMED Act: Delhi High Court
3 months, 3 weeks ago

Writ Jurisdiction Cannot Be Invoked To Challenge Arbitral Award, Only To Circumvent Statutory Requirement Of S.19 Of MSMED Act: Delhi High Court

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The Delhi High Court bench of Justice Sanjeev Narula, while hearing a writ petition challenging an arbitral award passed by the Micro and Small Enterprises Facilitation Council, has held that invoking the writ jurisdiction to challenge an arbitral award would circumvent the statutory requirement of pre-deposit u/s 19 of the MSMED Act, and would amount to defeating the legislative intent. To buttress the submission, reliance was placed on DD Auto Private Limited v. Pivotal Infrastructure Private Limited ; v. ; The statutory requirement of a pre-deposit of 75% of the awarded amount as u/s 19 of the MSMED Act is a significant hurdle, depriving the Petitioner from seeking recourse under the A&C Act. In India Glycols Limited and Another v. Micro and Small Enterprises Facilitation Council, Medchal - Malkajgri and Others, the Supreme Court held that a writ petition challenging an award passed in arbitral proceedings initiated under the MSMED Act is not maintainable. The Supreme Court has emphasized that allowing such petitions solely to bypass the statutory pre-deposit requirement u/s 19 of the MSMED Act would undermine the legislative intent.

History of this topic

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