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2016 (11) TMI 1541 - HC - Indian LawsWhether mere filing of execution under Section 34 of the Act of 1996 for setting aside the award passed under the Act of 2006, the execution filed under Section 36 of the Act of 1996 would stand suspended or Section 19 of the Act of 2006 would prevail over the Act of 1996 and 75% of the deposit under Section 19 of the Act of 2006 is mandatory to make an application under Section 34 of the Act of 1996 maintainable? - Held that: - the application u/s 34 of the Act of 1996 would be maintainable for setting aside the award passed by the Micro and Small Enterprises Facilitation Council constituted under Section 20 of the Act of 2006 but while filing an application, the appellant has to deposit 75% of the amount in terms of the award in the manner indicated by such court and as such, the application under Section 34 of the Act of 1996 challenging the award passed by the Facilitation Council has to be read along with Section 19 of the Act of 2006 and in order to make the application under Section 34 of the Act of 1996 maintainable and duly constituted, a mandatory deposit of 75% of awarded amount has to be made in the manner directed by the court trying that application. In the present case, the award was passed by the Facilitation Council on 12-3-2014, the respondent herein filed application for execution of award on 21-8-2014 and thereafter on 19-2-2015, application under Section 34 of the Act of 1996 was filed by the petitioner for setting aside the award in which the respondent herein objected that compliance of mandatory provision of Section 19 of the Act of 2006 has not been made therefore application u/s 34 of the Act of 1996 cannot be maintained - The trial Court has already held that the petitioner's application u/s 34 of the Act of 1996 is not maintainable for want of prerequisite deposit u/s 19 of the Act of 2006 as such, the award is clearly executable, as the petitioner's application u/s 34 of the Act of 1996 is not duly constituted and not liable to be entertained, and rightly held so by the trial Court and the petitioner's application has rightly been rejected by the trial Court. Whether in view of the objection filed u/s 22(3) of the SIC Act by the petitioner, the executing court has no jurisdiction to execute the award? - Held that: - the petitioner's plea in regard to applicability of the SIC Act is not complete in itself, rather halfhearted, it has neither been established that the awarded amount has been included in the scheme approved by the BIFR nor it has been shown how the civil court has jurisdiction in view of Section 26 of the SIC Act - the learned executing court is absolutely justified in rejecting the objections raised by the petitioner herein in execution and no error of jurisdiction has been committed while rejecting those objections raised by way of applications. Petition dismissed.
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