The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains the provisions of delayed payment to Micro and Small Enterprise , (U/s Section 15- 24). State Governments to establish Micro and Small Enterprise Facilitation Council (MSEFC) for settlement of disputes on getting references / filing on Delayed payments. (Section 20 and 21).
Features
- The buyer is liable to pay compound interest with the monthly rests to the supplier on the amount at the three times of the bank rate notified by RBI in case he does not make payment to the supplier for his supplies of goods or services within 45 days of the acceptance of the goods/service rendered. (Section 16).
- State Governments to notify (i) Authority for filing Entrepreneur Memorandum (ii) Rules of MSEFC and (iii) Constitution of MSEFC.
- All States / UTs have notified Authority for Filing Entrepreneur’s Memorandum, have Notified rules of MSEFC and all the 37 States / UTs have constituted MSEFCs, as per provisions laid down under MSMED Act 2006.
- Every reference made to MSEFC shall be decided within a period of ninety days from the date of making such a reference as per provisions laid in the Act.
- If the Appellant (not being the supplier) wants to file an appeal, no application for setting aside any decree or award by the MSEFC shall be entertained by any court unless the appellant (not being supplier) has deposited with it, the 75% of the award amount. (Section 19).
Checklist / prerequisites
- Any Micro or small enterprise having valid Udyam Registration can apply.
- Copy of purchase order.
- Copy of invoice.
- Amount under dispute.
- Buyer address with PIN, Email ID and contact number.
Please do visit – https://samadhaan.msme.gov.in
Courtesy: Team MSME.
Disclaimer
This document has been issued in the general interest of knowledge transfer purpose and it cannot be construed in any other manner whatsoever.
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