ADVANTAGE MSMEs
DELAY IN PAYMENTS TO MSMES FOR SUPPLIES RECEIVED TO INVITE HEAVY PENALTY-SAYS DELAYED PAYMENT COUNCIL, CHAIRMAN, LUDHIANA.
The Ludhiana’s MSMEs feeling a sigh of relief as the proactive role of Delayed Payment Council here finds acceptability by Industry. Dispute references are getting resolved to the satisfaction of concerned parties. Dy. Commissioner office and DIC Ludhiana hold regular Conciliation Proceedings.
Below is given details of press Note from DIC, Ludhiana.
| Enterprises who did not pay timely payment to MSMEs, penalised with THREE TIMES INTEREST PENALTY along with principle amount by Delayed Payment Council, Ludhiana
(समय पर एमएसएमई को पेमेंट ना लौटाना पडा महंगा , डिलीट पेमेंट काउंडसल, लुडियाना I ) Today on dated 17/12/2020 – 81st meeting was convened under the chairmanship of worthy Deputy Commissioner, Ludhiana as CHAIRMAN DISTRICT LEVEL MICRO & SMALL ENTERPRISES DEVELOPMENT COUNCIL, LUDHIANA Comprising other members Advocate Himanshu Walia, Sh Anil Kumar Lead District Manager and Sh Mahesh Khanna Convener Cum General manager , Dist. Industries Centre Ludhiana . Also attended by Miss Snigdha DDF and specifically attended by Smt Neeru Katyal ADC -P , Ludhiana . In today’s meeting 17 references were enlisted for Conciliation proceedings meeting and nine cases were enlisted for arbitration Proceedings. During conciliation proceedings, observing No component of settlement in spite of providing ample opportunity to the stakeholders, the conciliation proceedings of three references Terminator and subject matter taken up for adjudication through arbitration by District council and during arbitration proceedings ample opportunity provided to both the claimant and respondent to adduce evidences in their respective claim and defence . Three cases were adjudicated through arbitration and references of three cases were admitted in favor of MSME claimants and against the respondents who defaulted in timely payment in respect of the goods received from MSME. Two enterprises M/s Mehak Engineers, Sua Road, Dhandari Kalan, Ludhiana & Indogem Enamels Pvt Ltd E-123, Phase-4, Focal Point, Ludhiana submitted application before district council for withdrawal of their references petitions against their respective respondents by stating that they have received principle amount and are satisfied and shall not appeal against the respondents, which was accepted by the District council and references dismissed as withdrawn. Where as claimants such as M/s Steel Magic Plot No 883 Indl Area A Ludhiana , M/s General Industries E-672, Phase-8, Focal Point, Ludhiana and M/s Indogem Enamels Pvt Ltd who adduced evidences against their respective respondents and by appreciating the evidences and detail analysis the MSME Delayed payment council adjudicated and issued the award in favor of these claimant not only for principle amount as claimed but also penalized the respective respondents to pay compound interest with monthly rests to the supplier on respective amounts at three times of the bank rate notified by the Reserve Bank as per provision of section 16 of MSME dev Act 2006 . The chairman cum Deputy Commissioner Ludhiana warned that the delay in payments for supplies received from the Micro Small and Medium Enterprises would invite heavy penalty against defaulting buyers. 17/12/2020 General Manager, District Industries Centre Ludhiana
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Section 15 and Section 16 of The Micro, Small and Medium Enterprises Development Act, 2006 in r/o payment to MSMEs
SEC 15. EXPLAINS LIABILITY OF BUYER TO MAKE PAYMENT.
—Where any supplier, supplies any goods or renders any services to any buyer, the buyer shall make payment therefore on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day: Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.
SECTION 16 EXPLAINS: DATE FROM WHICH AND RATE AT WHICH INTEREST IS PAYABLE.
—Where any buyer fails to make payment of the amount to the supplier, as required under section 15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the date agreed upon, at three times of the bank rate notified by the Reserve Bank.
Compiled by: https://theglobaltalk.com/
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1 comment
The directive was the need of the hour and indeed a welcome step.