“MSME unit can approach Micro and Small Enterprise Facilitation Council (MSEFC) in their State to redress their delayed payment grievance”, the Ministry said, adding that every reference made to the MSEFC shall be decided within a period of 90 days from the date of making the reference.
Issuing the draft revised rules for Micro and Small Enterprises Facilitation Council (MSEFC), the Ministry said an aggrieved MSE unit can move a reference to the MSEFC having jurisdiction of the area.
Any Micro or small enterprise having valid EM Part -II /UAM can apply through the MSEFC website.
“The Council shall either itself conduct conciliation in the matter or seek the assistance of any institute for conducting the conciliation and if it decides to do so, shall refer the parties to the Institute”, it said.
The MSMED Act, 2006, contains provisions of Delayed Payment to Micro and Small Enterprise (MSEs) which has the provision that the state Governments should establish MSEFC for settlement of disputes on getting references/filing on delayed payments.
MSEFC of the state after examining the case filed by MSE unit will issue directions to the buyer unit for payment of due amount along with interest as per the provisions under the MSMED Act 2006.
Under the Act, 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.
Source: MoneyControl