MSEFC at Jammu holds hearing to settle delayed payment cases

JAMMU: Micro Small Enterprises Facilitation Council, 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 and was attended by the members and their representatives; Lalit Mahajan, Chairman Federation of Industries Jammu, D.P Singh GM(M) J&K SICOP, Navneet Kour Manager J&KDFC (Via VC) and Sanjay Gupta Incharge (Credit) J&K Bank.
Chief Engineer (P&P) along with Executive Engineers of TLMD-I and TLMD-II also attended the hearing to sort out issues pertaining to delayed payments of PDD to MSE`s. Superintending Engineer PHE also attended the hearing of MSEFC besides the staff of MSEFC Secretariat was also present.
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 23 cases of delayed payments for discussion and after deliberations issued award in favour of one Micro Small Enterprises involving a Principal outstanding amount of Rs. 325955/- along with an interest on delayed payment amounting to Rs.11614584/-.The parties to the cases were advised to complete the process of reconciliation under section 18(2) of the Act within a period of one week and furnish the status to the MSEFC for further action.
The MSEFC was informed that with the intervention of the council an amount of Rs. 5.60 Crore on account of delayed payments has been received by the appellant units.

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