FASII requests Punjab Government to form Delayed Payment Councils at district levels

Ludhiana, October 31, 2013: FASII national president Badish Jindal has said after the recent decision of the Madras High Court the Delayed Payment Act has become very strong. But due to the sluggish attitude of the Punjab Government the Industry of Punjab is being deprived of its benefits.

In a statement here on Thursday, he added in other states there are so many delayed payment councils in a state and in many states these are at district level but even after the repeated requests the Punjab Government is refusing to form such councils in major cities.

So the industrialists of Ludhiana, Jalandhar and Amritsar have to move to Chandigarh for filing and contesting their cases.

Even the meeting of the only formed Delayed Payment Council is not held on time which is resulting into the pendency of hundreds of such cases.

On the request of FASII the Ministry of MSME has written to the Punjab Government to form Delayed Payment Councils at District Level but Punjab Government clearly refused to do so. 

Under the MSME Act of 2006 where a buyer delays payment beyond 45 days from the date of supply, the MSE supplier can approach the Micro Small Enterprises Facilitation Council (MSEFC) and seek an award or a decree.

If the buyer does not want agree with the order and wishes to appeal against the order of the Council, it should first pre-pay 75% of the amount in the Order and only then can appeal against the order High Court upholds MSME Act provision Facilitation Award can be contested only upon payment of 75% pre-deposit,

The recent judgment of the Madras High Court upholding award of the Facilitation Council in favour of Nortan Intec Rubber on a petition filed by Goodyear India Ltd, has come as a big relief to the entire MSME sector.

Payments to Micro and Small Enterprises (MSE) must be made within 45 days. If not, MSE can approach the MSE Facilitation Council of the State.

Council tries to act as reconciliation body to help resolve the matter between buyer and supplier.

If reconciliation is not possible, the Council can pass its own award/ order

The Judgment has wider implications as anyone challenging the award of the Facilitation Council will have to mandatorily pre?deposit 75 per cent of the admitted amount within 120 days of receipt of the award.

“FASII is again requesting the State Government to form Delayed Payment Councils at District levels so that the MSE’s can take due benefit from this scheme”, said Jindal. www.cityairnews.com

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