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Checking relevance for Silpi Industries VS Kerala State Road Transport Corporation...
Silpi Industries VS Kerala State Road Transport Corporation - 2021 0 Supreme(SC) 299 : Under Section 15 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), a buyer is required to make payment for goods supplied or services rendered on or before the date agreed upon in writing, or, in the absence of an agreement, before the ''''appointed day'''' (defined as the day following the expiry of 30 days from acceptance or deemed acceptance). This obligation applies to work contracts where goods are supplied or services are rendered. If the buyer fails to make payment by the stipulated date, Section 16 mandates that the buyer shall pay compound interest at three times the bank rate notified by the Reserve Bank of India, with monthly rests, from the appointed day or the date immediately following the agreed date. This interest benefit is available to MSMEs (micro, small, or medium enterprises) as suppliers in such contracts, regardless of any contrary agreement between the parties. The right to interest arises automatically upon default in payment and is enforceable through the Micro and Small Enterprises Facilitation Council under Section 18, which facilitates conciliation and arbitration under the Arbitration and Conciliation Act, 1996. Thus, an MSME is entitled to interest benefits for delayed payment in a work contract if the buyer fails to pay within the prescribed period, and the contract involves supply of goods or rendering of services by the MSME.Checking relevance for Hari Babu Thota VS . ...
Checking relevance for NBCC (India) Ltd. VS State of West Bengal...
NBCC (India) Ltd. VS State of West Bengal - 2025 0 Supreme(SC) 86 : Under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006, any party to a dispute may refer a matter to the Micro and Small Enterprises Facilitation Council, including disputes arising from work contracts where payment is due. The court held that registration under Section 8 is not a precondition for making such a reference. Furthermore, Section 16 of the Act mandates that where a buyer fails to make payment as required under Section 15, the buyer shall be liable to pay compound interest with monthly rests at three times the bank rate notified by the Reserve Bank of India, from the appointed day or the date immediately following the agreed payment date. This interest liability applies to any amount due under a work contract, regardless of whether the supplier is registered, and is enforceable even in the absence of a specific agreement between the parties. Thus, an MSME is entitled to interest benefits for delayed payment in a work contract if the payment is overdue beyond the agreed or statutory period.Checking relevance for Pro Knits VS Board of Directors of Canara Bank...
Checking relevance for GUJARAT STATE CIVIL SUPPLIES CORPORATION LTD. VS MAHAKALI FOODS PVT. LTD. (UNIT 2)...
GUJARAT STATE CIVIL SUPPLIES CORPORATION LTD. VS MAHAKALI FOODS PVT. LTD. (UNIT 2) - 2022 0 Supreme(SC) 1106 : Under Section 15 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), a buyer is liable to make payment for goods supplied or services rendered by a supplier on or before the date agreed upon in writing, or, in the absence of such an agreement, before the appointed day. The agreed period in writing shall not exceed 45 days from the day of acceptance or deemed acceptance. Section 16 of the MSMED Act provides that if the buyer fails to make payment as required under Section 15, the buyer shall be liable to pay compound interest with monthly rests at three times the bank rate notified by the Reserve Bank, from the appointed day or the date immediately following the agreed date, regardless of any agreement between the parties or any other law. This interest liability applies to work contracts where a supplier (including an MSME) provides services or goods to a buyer. Furthermore, Section 18(1) of the MSMED Act allows any party to a dispute to refer a claim for delayed payment to the Micro and Small Enterprises Facilitation Council, even if there is an arbitration agreement, and the Council may initiate conciliation or arbitration under the Arbitration and Conciliation Act, 1996. The Supreme Court has held that the provisions of the MSMED Act override conflicting provisions of the Arbitration Act in cases involving MSMEs, affirming that MSMEs are entitled to the interest benefit under Section 16 and the right to refer disputes to the Facilitation Council. Therefore, a contract is a work contract if it involves the supply of goods or rendering of services by a supplier (including an MSME) to a buyer, and the MSME is entitled to interest under Section 16 for delayed payment, regardless of any arbitration clause, provided the claim falls under the MSMED Act’s jurisdiction.Checking relevance for S. R. Technologies (Unit-II) VS Micro and Small Enterprises Facilitation Council...
S. R. Technologies (Unit-II) VS Micro and Small Enterprises Facilitation Council - 2023 0 Supreme(Telangana) 22 : Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act), a work contract qualifies as a ''''supply of goods or services'''' for the purposes of Sections 15 to 18. If a micro or small enterprise (MSME) is a supplier in such a contract, it is entitled to interest on delayed payment. Section 15 mandates that a buyer must make payment within 45 days of acceptance or deemed acceptance. If payment is delayed, Section 16 requires the buyer to pay compound interest at three times the bank rate notified by the Reserve Bank, with monthly rests, from the appointed day. This interest is statutory and enforceable even if the contract does not provide for it. The entitlement to interest arises automatically upon default in payment, and the MSME can refer the dispute to the Facilitation Council under Section 18(1) for conciliation and, if necessary, arbitration. The Facilitation Council has jurisdiction over disputes involving amounts due under Section 17, which includes work contracts where an MSME is the supplier. Thus, an MSME is entitled to interest benefits in a work contract if the buyer fails to pay within the stipulated period.Checking relevance for Sterlite Power Transmission Limited VS Epc Solutions Llp...
Sterlite Power Transmission Limited VS Epc Solutions Llp - 2023 0 Supreme(Del) 4975 : Under the MSMED Act, 2006, a contract is considered a ''''work contract'''' if it involves the supply of goods or rendering of services by a supplier (defined as a Micro or Small Enterprise) to a buyer. The Act applies to such contracts when the supplier is classified as a Micro or Small Enterprise at the time of the agreement or the date of supply of goods/services. A Micro or Small Enterprise is entitled to interest benefits for delayed payments under Section 16 of the MSMED Act, 2006, which mandates compound interest at three times the bank rate notified by the Reserve Bank of India, with monthly rests, from the appointed day or the date immediately following the agreed payment date. The entitlement to interest is independent of any agreement between the parties and is enforceable even if the contract does not specify interest terms. The Act''''s provisions apply regardless of the nature of the contract, provided the supplier qualifies as a Micro or Small Enterprise at the relevant time. The court has held that the relevant date for determining eligibility is the date of the agreement and the date of supply of goods/services, and that reclassification of an enterprise to Medium Enterprise does not automatically disqualify it from benefits if it was Micro or Small at the time of the agreement or supply, especially if a notification allows continued benefits for up to three years after reclassification.
