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interest on delayed payments to small scale and ancillary

Dear friends,

A supplier has filed a claim under "interest on Delayed payments to small scale and Ancillary Industrial Undertakings Act 1993 (Act o12 of 1993) before the commisioner of industries, Hyd.

by this reference he is claiming the amounts by mixing two catogories "towards interest on delayed payments" and disputing the amount already paid by us.

in these circumstances, i would like to have the opinion of our expert friends here whether or not ..." the arbitrator under this Act can only decide the matter with interest on delayed payments but not the disputed payments"

if this stand is correct, can anyone of our freinds here provide any judgments supporting the stand

will be very thankful for support



"Interest on Delayed payments to small scale and Ancillary Industrial Undertakings Act 1993 (Act o12 of 1993) "

This Legislation has already been repealed and substituted by the MICRO SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (MSMED) ACT,2006.

Chapter V of MSMED ACT,20006 talks about interest in delay of payment to small enterprise. As per Section 18(3) of the said act The Facilitation Council can itself act as an Arbitrator or refer the matter to any institution, only in case of failure of the Conciliator.

The legislation provides the scope only in case of delay in payment to Small Scale Enterprise.

And As per Principal v. Manibhai case, Para 44,45 and 46, it was clearly stated that MSMED Act 2006  being a special law will have over-riding effect upon any other legislation.Even,Sectiuon 24 of MSMED Act,2006 talks about the overridiing effect of the said legislation.

Also  refer to Welspun Corp. Ltd. v. The Micro and Small, Medium Enterprises Facilitation Council, Punjab and others (2012)166PLR195, MANU/PH/3690/2011


Attached File : 1073277324 principal vs manibhai on 11 october, 2011.pdf downloaded 234 times



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