High Court set aside rejection of petitioner's plea to withdraw deposit under MSME Act, 2006. Court permitted withdrawal of Rs.1.5 crore subject to bank guarantee and directed expedited disposal of connected proceedings.
Set aside the impugned order. Permitted petitioner to withdraw Rs.1,50,00,000/- subject to furnishing bank guarantee.
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IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 21.12.2018
C O R A M
THE HON'BLE MR.JUSTICE M.S.RAMESH
C.R.P.[PD] No.4601 of 2017 and C.M.P.No.13319 of 2018
M/s.Unicon Engineers, Rep. by Mr.P.Ponram Managing Partner Bharathi Road, Chinnavedampatty, Coimbatore – 641 049. .. Petitioner Vs
Chief Engineer/PTPS-I Panipat Thermal Power Station, Panipat (PTPS-I) (A Unit of Haryana Power Generation Corporation Ltd) Panipat – 132 105. .. Respondent
Prayer: Civil Revision Petition filed under Article 227 of the Constitution of India praying to set aside the order and Decreetal Order dated 13.09.2017 passed in I.A.No.1114 of 2017 in A.O.P.No.55 of 2017 on the file of Principal District Court, Coimbatore and allow the I.A.
O R D E R
The only ground on the petitioner's application seeking for permission to withdraw a sum of Rs.2,97,74,600/- (Rupees Two http://www.judis.nic.in
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Crores Ninety Seven Lakhs Seventy Four Thousand and Six Hundred only) which is in the bank deposit came to be rejected, is that there is no provision under the Micro, Small and Medium Enterprises Development Act, 2006.
“ Section 19 of the Micro, Small and Medium Enterprises Development Act, 2006:
19.Application for setting aside decree, award or order.-No application for setting aside any decree, award or other order made either by the Council itself or by any institution or centre providing alternate dispute resolution services to which a reference is made by the Council, shall be entertained by any Court unless the appellant (not being a supplier) has deposited with it seventy-five per cent of the amount in terms of the decree, award or, as the case may be, the other order in the manner directed by such Court: Provided that pending disposal of the application to set aside the decree, award or order, the Court shall
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order that such percentage of the amount deposited shall be paid to the supplier, as it considers reasonable under the circumstances of the case subject to such conditions as it deems necessary to impose.”
correct and hence, the petitioner will be entitled to succeed.
Consequently, the petitioner herein is permitted to withdraw a sum of Rs.1,50,00,000/- (Rupees One Crore Fifty Lakhs only), which is lying in the bank deposit in the account of A.O.P.No.55 of 2017.
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The petitioner shall make out an appropriate memo before the learned Principal District Judge, Coimbatore along with a copy of this order and on the receipt of the same, the learned Principal District Judge, Coimbatore shall pass appropriate orders permitting the petitioner to withdraw a sum of Rs.1,50,00,000/- (Rupees One Crore Fifty Lakhs only), after furnishing the necessary Bank Guarantee to the respondent herein.
6.At this Juncture, the Learned Standing Counsel for the
respondent submits that the petitioner herein has also filed an application in I.A.No.1360 of 2017, seeking for rejection of the appeal pending before the Principal District Judge and same has been kept pending for a very long time. It is also brought to the notice of this Court that the counter has been filed in the said application seeking for rejection of the appeal has been filed and the application is ripe for enquiry.
shall endeavour to dispose of the said application as expeditiously as possible, in any event, within a period of 60 days, from the date
of receipt of a copy of this order. The learned Principal District Judge, Coimbatore shall also endeavour to dispose of the main appeal as expeditiously as possible, thereafter.
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8.The Civil Revision petition stands ordered accordingly. No
costs. Consequently, the connected miscellaneous petition is closed.
21.12.2018
gsi/kmi
Index : Yes/No
Internet : Yes/No
Note: Issue order copy on 03.01.2019.
To
The Chief Engineer/PTPS-I
Panipat Thermal Power Station,
Panipat (PTPS-I)
(A Unit of Haryana Power
Generation Corporation Ltd)
Panipat – 132 105.
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M.S.RAMESH, J.
gsi/kmi
C.R.P.[PD] No.4601 of 2017
and
C.M.P.No.13319 of 2018
21.12.2018
3 issues framed by the court
Whether the petitioner is entitled to withdraw the deposit amount lying in the bank account pending the dispute under Section 19 of the MSME Act, 2006.
Whether the lower court erred in rejecting the plea that there is no provision under the MSME Act allowing withdrawal of the deposit.
Whether the High Court can direct the lower court to permit withdrawal of a portion of the deposit subject to furnishing a bank guarantee.
2 provisions across 2 enactments
M/s.Unicon Engineers
Chief Engineer/PTPS-I Panipat Thermal Power Station
M.S.RAMESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
