Allahabad High Court
U.P. Rajya Karmchari Kalyan Nigam vs District Judge, Kanpur Nagar And Others on 3 January, 2013
Equivalent citations: AIR 2013 ALLAHABAD 77, 2013 (3) ALL LJ 52, (2013) 5 ADJ 75 (ALL), (2013) 126 ALLINDCAS 283 (ALL), 2013 (5) ADJ 75 NOC, (2013) 97 ALL LR 368, (2013) 2 ALL WC 1516
Author: Pankaj Mithal
Bench: Pankaj Mithal
HIGH COURT OF JUDICATURE AT ALLAHABAD ?A.F.R. Court No. - 4 Case :- WRIT - C No. - 68144 of 2012 Petitioner :- U.P. Rajya Karmchari Kalyan Nigam Respondent :- District Judge, Kanpur Nagar And Others Petitioner Counsel :- Nripendra Mishra Hon'ble Pankaj Mithal,J.
The petitioner has preferred this writ petition against the order of the District Judge dated 30.7.2012 by which he has been directed to deposit the admitted amount of award i.e. Rs.7,49,598/- for the purposes of hearing of application for setting aside the award.
Heard Sri Nripendra Mishra, learned counsel for the petitioner.
It appears that the respondent No.2 made a claim against the petitioner which was referred under Section 6(2) of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993 (in short "1993 Act") to the Industry Facilitation Council for the purposes of arbitration. Pursuant to the reference an award was made on 19.10.2010 awarding Rs.7,49,598/- and interest for the period 1.1.1997 to 30.10.2000 amounting to Rs.10,50,564/- to respondent No.2. Petitioner applied for setting aside the said award before the District Judge. It is on the above application, on the objection by the respondent No.2 that the application can not be entertained unless the petitioner deposits 75% of the amount awarded, that the District Judge has passed the impugned order directing the petitioner to at least deposit the admitted amount as awarded.
The submission of Sri Nripendra Mishra, learned counsel for the petitioner is that no condition to deposit any amount can be imposed as the application for setting aside the award is under Section 34 of the Arbitration and Conciliation Act, 1996 which does not provide for deposit of any part of the awarded amount as a condition for maintaining an application.
The arbitration proceedings were drawn pursuant to the reference made under Section 6(2) of the 1993 Act. Section 6(2) of the said Act apart from providing for referring the dispute to an arbitrator provides that the provisions of Arbitration and Conciliation Act, 1996 (in short "1996 Act") shall apply as if it is an arbitration pursuant to an arbitration agreement under the 1996 Act.
Section 7 of the 1993 Act provides for the mandatory deposit of 75% of amount awarded as a condition precedent for appealing against the award.
The 1993 Act has been repealed by Section 32 of the Micro, Small and Medium Enterprises Development Act, 2006. The said Act vide Section 19 provides that an application for setting aside a decree, award or any order made under the Act by the Council shall not be entertained unless the applicant/appellant deposits 75% of the amount in terms of the decree/award.
The provisions of Section 34 of the 1996 Act are to be read along with the provisions of the aforesaid both the Acts which in addition to the procedure prescribed under Section 34 of the 1996 Act provides for deposit of 75% of the amount of the award as a condition precedent for entertaining the application for setting aside the award.
A conjoint reading of the above provisions makes it clear that an appeal or an application for setting aside the award made by the Industry Facilitation Council can only be entertained if the applicant deposits 75% of the amount awarded. This condition of deposit is in addition to the conditions or procedure laid down under Section 34 of the 1996 Act.
Accordingly, the application of the petitioner for setting aside the award cannot be entertained unless 75% of the amount awarded is deposited. The court below is, therefore, not justified in permitting any lesser amount to be deposited.
The writ petition is dismissed with the direction to the court below to proceed with the decision of the application only on deposit of 75% of the decreed amount by the petitioner.
Order Date :- 3.1.2013 brizesh