Application for setting aside decree, award or order
Section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 deals with 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 supplie The Act came into force on 02 Oct 2006.
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 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.
Section 19, The Micro, Small and Medium Enterprises Development Act, 2006 (Act 27 of 2006).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Vikas Export v. Shree Maruti Art & Craft
Court's Decision & Legal Precedent
A challenge to an MSEFC award must comply with s.19’s mandatory 75% pre-deposit; attempting a second/parallel Arbitration Act s.34 petition without satisfying s.19 is not maintainable.
On this section: Enforces s.19 as a non-derogable gateway to setting aside MSEFC awards, blocking circumvention via a fresh s.34 filing.
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M.P. Poorv Kshetra Vidyut Vitaran Co. Ltd. v. Hi-Tek Powercon Pvt. Ltd.
Court's Decision & Legal Precedent
Section 15’s payment liability is the principal foundation of the MSEFC award; when computing the s.19 challenge deposit, the court treats the s.15 principal together with statutory interest as the award ‘amount’.
On this section: Construes s.19’s ‘amount in terms of the decree/award’ to include interest awarded under the MSMED scheme, so the 75% figure cannot exclude s.16 interest.
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Prathien Infrastructures v. Micro Small Enterprises Facilitation Council & K.K. Electricals
Court's Decision & Legal Precedent
Although setting aside an MSEFC award ordinarily requires a s.19 application with 75% deposit, where the Council ignored the Arbitration Act adjudication process after failed conciliation and passed an award without evidence, the High Court may quash and remit under Art.227 without treating s.19 as an absolute bar.
On this section: Clarifies the outer limit of s.19: the deposit-gated challenge assumes a procedurally regular award; patent failure of s.18 process keeps Art.227 available.
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Indian Oil Corporation Ltd. & Ors. v. Haryana Micro and Small Enterprise Facilitation Council & Ors.
Court's Decision & Legal Precedent
Section 19’s deposit-gated setting-aside remedy presupposes an award of the Facilitation Council; ‘awards’ passed solely by empaneled facilitators without Council imprimatur are void and may be corrected in writ jurisdiction, while a valid Council award remains challengeable only via s.19 with 75% deposit.
On this section: Draws the s.19 line: deposit is mandatory for true Council awards, but does not validate or shield void facilitator-only awards from writ correction.
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Dodal Electro Instruments v. Micro and Small Enterprises Facilitation Council, Daman & Mexim Adhesive Tapes Pvt. Ltd.
Court's Decision & Legal Precedent
Same as Dodale Electro: s.16 interest cannot rest on a procedurally void Council award and must be re-determined on remand.
On this section: Confirms s.19’s pre-deposit barrier does not immunise a procedurally void Council award from Art.226 scrutiny in the twin Daman reference.
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Dodale Electro Instruments v. Micro and Small Enterprises Facilitation Council, Daman & Mexim Adhesive Tapes Pvt. Ltd.
Court's Decision & Legal Precedent
Interest liability under s.16 rides on a valid determination of the buyer’s delayed-payment debt; where the Council’s award is set aside for skipping mandatory procedure, the s.16 interest component cannot stand independently and must be re-adjudicated on remand with proper opportunity.
On this section: Applies s.19’s setting-aside/pre-deposit architecture by clarifying when Art.226 remains available despite the 75% deposit mandate—i.e., where the award itself is a product of skipped mandatory Council procedure.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 19
What have the courts held on Section 19 of the Micro, Small and Medium Enterprises Development Act?
Vikas Export v. Shree Maruti Art & Craft (04 Aug 2025) is the leading judgment on this section among those set out below: Enforces s.19 as a non-derogable gateway to setting aside MSEFC awards, blocking circumvention via a fresh s.34 filing. Another 5 judgments on this section are set out below. They run from 2023 to 2025.
How do I find court cases under Section 19 of the Micro, Small and Medium Enterprises Development Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Micro, Small and Medium Enterprises Development Act 19, section 19 Micro, Small and Medium Enterprises Development Act, section 19 of the Micro, Small and Medium Enterprises Development Act. People searching for it also type section 19 of the micro small and medium enterprises development act 2006. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 6 reported judgments on this section are set out on this page, beginning with Vikas Export v. Shree Maruti Art & Craft (04 Aug 2025).
When did Section 19 of the Micro, Small and Medium Enterprises Development Act come into force?
Section 19 of the Micro, Small and Medium Enterprises Development Act, cited as Micro, Small and Medium Enterprises Development Act 19, came into force on 02 Oct 2006, having been enacted on 16 Jun 2006. It is in force as at the date shown on this page.
Other sections of this Act
- 3. Establishment of Board885 words
- 7. Classification of enterprises763 words
- 2. Definitions619 words
- 8. Memorandum of micro, small and medium enterprises349 words
- 29. Power to make rules313 words
- 18. Reference to Micro and small Enterprises Facilitation Council290 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.