MSMED ACT 2006
Querist :
Anonymous
(Querist) 04 January 2011
This query is : Resolved
First querry : Is the delayed payment clause in the MSME ACT 2006 is applicable to state or Central Goverment units who is a buyer of materials from an ssi Unit?
Second querry: If yes, as you know the central Govt is the creator of this act for welfare of ssi and the creator himself can be penalised if payment exceeds 45 days due to administration delay in clearing the bills?
Third querry: The contract/Purchase order is closed by settling all payments( including the delayed ones) in the year 2004 itself. The ssi unit in the year 2006 (not making any correspondance with buyer after closure of contract) is applying for interest for the payments beyond 45 days through msme council. Is that action of the ssi unit is correct? All the Payment dues are settled in 2004 itself. Any remedy for buyer being a government undertaking unit in this case to avoid the interest claim of ssi units as the contract is closed already and communicated to the supplier in 2004 itself.
Querist :
Anonymous
(Querist) 26 January 2011
no expert is here to answer my querry.
Saurendra Rautray
(Expert) 04 April 2013
Hi,
The Act is applicable to every buyer whether its a govt body/org or a private body/org. As per queries the limitation to file a case before the MSEFC or any other Council is for a period of 3 years from the date of supply or as per the agreed period. Please look into the act prior to MSMED Act 2006 as your queries relates to a period prior to MSMED Act 2006. In 2006 Act the period is stated as to be max for a period of 45 days from the date of supply.
You have stated that the payment has been made in 2004 including the principal and the interest, if that is true there is no case of action and hence one cannot file a case under the MSMED Act 2006. But if the party has not paid the interst as per the IFC then one can claim for the interst under the MSMED act 2006 but one should remember the limitation period to file a case under MSMED Act 2006 still 3 years.
Thanks
Saurendra
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