The High Court of Calcutta rules on rights of an award-holder under the Micro, Small and Medium Enterprises Development Act, 2006, seeking withdrawal of a part of the amount deposited by the award-debtor with the court.
The Court has reiterated the rights of MSMEs protected by the MSME Act. The present decision of the Court has emphasised upon and reinforced the discretionary power of courts under Section 19 of the MSME Act to decide the quantum and terms on which the amount deposited by an award-debtor could be withdrawn by a supplier awardholder.
The Court interpreted Section 19 in consonance with the object and scheme of the MSME Act, which is to ensure survival of MSMEs and prevent them from being crushed under the weight of financial pressures aggravated by initiation of proceedings for realisation of their dues from supply of materials to a buyer.
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