Delayed Payments
Micro and Small Enterprises (MSEs) are often vulnerable to delayed payments from buyers for goods or services rendered. To address this issue, MSEs can file a complaint with the Micro and Small Enterprise Facilitation Council (MSEFC) if a payment is not made within 45 days from the date of supply. Upon receiving the complaint, the MSEFC will issue directions to the buyer, instructing them to pay the due amount along with applicable interest, ensuring that MSEs are not financially burdened by delayed payments.
1.Claims Settlement
If efforts to resolve a dispute through conciliation are unsuccessful, the MSEFC can escalate the matter by referring the dispute to arbitration or an alternate dispute resolution (ADR) center. The process is governed by the Arbitration and Conciliation Act, 1996, which ensures that the dispute is handled efficiently and fairly. This legal framework provides MSEs with a robust mechanism for resolving disputes that may arise from non-payment or contractual issues.
2.Appeals
In case the buyer challenges an award or decree issued by the MSEFC, the buyer is required to deposit 75% of the disputed amount with the court. This provision ensures that the buyer has a financial stake in the appeal process, and it helps expedite the resolution of disputes, preventing unnecessary delays. This system protects the interests of MSEs while also providing buyers with a clear framework for contesting decisions.
These provisions under the MSME framework are crucial for protecting the financial interests of small and micro businesses, ensuring that they can resolve disputes in a timely and effective manner.