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    Question

    In the case of an appeal against the MSEFC's decision,

    what percentage of the award amount must be deposited by the applicant?
    A 25% Correct Answer Incorrect Answer
    B 50% Correct Answer Incorrect Answer
    C 75% Correct Answer Incorrect Answer
    D 100% Correct Answer Incorrect Answer
    E No deposit required Correct Answer Incorrect Answer

    Solution

    Under Section 19 of the MSMED Act, an appellant (usually the buyer) must deposit 75% of the award or decree amount with the court before filing an appeal against the decision of the MSE Facilitation Council. This condition serves two purposes: it discourages frivolous appeals and ensures that the MSME has a strong likelihood of receiving the money owed. The deposited amount may be released to the MSME based on the court’s direction, pending the outcome of the appeal.

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