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Delayed payments against supply

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MEFC Jammu holds hearing for claims of interest

JAMMU: Micro Small Enterprises Facilitation Council (MEFC), Jammu held hearing in respect of claims of interest on delayed payments against supply of goods to buyers by the Micro and Small units, under the Chairmanship of Director Industries & Commerce Jammu, Anoo Malhotra (Chairman MSEFC Jammu).
The hearing was held in the office of Director Industries & Commerce Jammu at Jawahar Lal Nehru Udyog Bhawan, Jammu and attended by the members and their representatives; Rattan Dogra, Chairman Federation of Industries Jammu; D.P Singh GM(M) J&K SICOP; Navneet Kour Manager J&K DFC and Anita Nehru (Credit) J&K Bank and Pawan Goswami Functional Manager along with staff of MSEFC Secretariat.
The Chairman of the MSEFC reiterated various provisions of the MSMED Act under Chapter V pertaining to delayed payments highlighting that, the buyer in terms of Purchase or availing Services has to make payment to the Micro and Small unit supplier or service provider on or before the date agreed upon which in no case shall exceed 45 days from the date of acceptance of goods or services. In case of failure to comply with the timeline, the buyer is liable to pay interest with monthly rests (Compound Interest) at three times the bank rate notified by RBI on the amount under default.
The MSEFC took up 39 (Thirty nine) cases of delayed payments for discussion out of which 9 cases were decided for issuance of award amounting to Rs. 6.31 Cr, 5 cases were decided for initiating arbitration proceeding under section 18 (3) of MSMED Act. 2006 after the conciliation proceedings failed to resolve the issue.
Twenty new cases were considered for proceeding ahead for conciliation under section 18(2) of MSMED Act. 2006 and in remaining cases the council decided to issue final notice to the respondent department for clearance of pending delayed payment to the appellant units.
A total of 30 cases have been settled by MSEFC Jammu, involving an amount of Rs. 24.50 Cr. on account of Principal and interest on delayed payments till date.

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