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 On 26.09.2016, M/s Unicon Engineers sent a letter to MSEFC requesting to reject the petition filed by TANCEM on the grounds that it was barred by limitation and that TANCEM had not furnished 75% of the amount as pre-deposit, as mandated by Section 19 of the MSMED Act.

TANCEM filed a detailed reply on 06.10.2016 qua the objections raised by M/s Unicon Engineers. Similar objections were again raised by M/s Unicon Engineers to the response filed by TANCEM.  Thereafter, MSEFC passed an order dated 25.10.2016 dismissing the recall petition on grounds of delay, objections raised by M/s Unicon Engineers and lack of provision to recall the award.  On 16.12.2016, M/s Unicon Engineers filed an execution petition before the High Court of Judicature at Madras claiming an amount of Rs.5,88,88,591/- in terms of the order passed by the MSEFC.  On 31.12.2016, TANCEM filed a petition under Section 34 of the A&C Act before the High Court of Judicature at Madras to set aside the award passed by MSEFC and to direct M/s Unicon Engineers to pay the amount due for the loss incurred towards various heads including interest and damages.

TANCEM filed an Application for waiver of pre-deposit of 75% of the award amount as stipulated under Section 19 MSMED Act, which was disposed of vide order dated 20.07.2018 by the Single Judge of the High Court of Judicature at Madras directing TANCEM to pre- deposit the amount as per the MSMED Act within eight weeks from the date of the order.

 Meanwhile, the High Court of Judicature at Madras vide order dated 25.02.2019 directed attachment of the movables of TANCEM in the execution proceedings. TANCEM sought a stay against the attachment order. The High Court of Judicature at Madras vide order dated 11.03.2019 granted an interim stay on the condition that TANCEM deposit an amount of Rs. 3 crores.

TANCEM also filed a transfer petition before this Court seeking transfer of the writ petition filed by it before the High Court of Judicature at Madras challenging the vires of Sections 16 to 19 of the MSMED Act. The writ petition of TANCEM before the High Court was tagged with the batch of petitions pending before this Court vide order dated 15.10.2020.

 By the order dated 09.09.2021 of the Single Judge, objections filed by TANCEM under Section 34 of the A&C Act were held to be not maintainable on account of being barred by limitation and as being beyond the condonable period. The same were also dismissed on account of the failure of TANCEM to make mandatory deposit in terms of Section 19 of the MSMED Act.

 The appeal preferred against the same was dismissed as withdrawn vide order dated 28.04.2022 by the Division Bench of the High Court of Judicature at Madras. In the meanwhile, M/s Unicon Engineers filed a calculation memo claiming Rs.8,18,26,844/- as the balance amount due from TANCEM. This amount was later revised to Rs.7,88,23,549/-. Objections to the said calculation were filed by TANCEM.

 In these circumstances, TANCEM again preferred a fresh writ petition assailing the order dated 04.06.2016 of the MSEFC in which an interim order was passed in its favour. However, vide order dated 13.07.2022, the Single Judge dismissed the writ petition observing that the relief sought by TANCEM would be governed by the fate of the proceedings challenging the vires of Sections 16 to 19 of the MSMED Act, which was now pending before this Court in a batch of matters. It was held that in case TANCEM’s challenge to the vires of the aforesaid provisions succeeded, the relief as sought by it may be granted and the amount already disbursed/released to M/s Unicon Engineers would be refunded.