P S SUNTHARRAJEN 06 February 2016

Msme petition

Dear Sir, We are one of the Medium enterprise registered under MSME Act. One of our supplier filed a petition before the MSME FACILITAION COUNCIL,CHENNAI,TAMILNADU under sec.18(3). Our Bank Account remains NPA from August'2015 i.e more than 3 months. We have also referred our company with BIFR and our reference has been registered. Now kindly clarify whether ,the petition filed before the council can be proceeded with pending BIFR Reference and Account NPA..

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Saurendra Rautray (advocate) 18 February 2017

Dears Sir,

Kindly note that the protection under the SICA Act under section 22 is no longer avialable since the BIFR is no more working. All the cases before such board has been abated. Even if the protection was there an arbitration proceeding cannot be stopped as the proceedings are before a tribunal/arbitrator and hence its not court. The proceeding would go on till passing of the award but execution of the award could have been stayed as per the above SICA provison.

Regards

Saurendra Rautray

09437008255

www.rautray.com