Latest news with #MSMEDevelopmentAct
Time of India
4 days ago
- Business
- Time of India
Online resolution for late MSE payments likely from next week
The government is likely to next week roll out Online Dispute Resolution (ODR) for speedier resolution of delayed payment disputes for micro and small enterprises , officials said. Presently, the Samadhaan portal provides limited digital services to MSEs such as registration for dispute resolution. Under the proposed mechanism, parties can not only register their delayed payment cases but also submit documents on the portal as evidence to strengthen their case. "Right from the filing stage, sending notice, and hearing every bit will be digitised. Samadhaan portal will be subsumed under ODR. The scheme promotes document-only dispute resolution, as in commercial disputes, documents override verbal submission, " a government official told ET. MSEs will also be provided concessions in application, documentation and other processing fees. The ODR mechanism under the MSME Development Act seeks to strengthen institutional support by building human resource and technological capacity of the Micro and Small Enterprises Facilitation Council (MSEFC), set up under the MSMED Act, the official added. These MSEFCs will be financially assisted under the scheme to create legal capacity. Live Events The MSMED Act prescribes a 45-day window for buyers to pay their MSME suppliers, failing which they become liable to payment of interest. As part of the ODR, the government is also giving a push to AI, allowing parties to opt for an AI-facilitated dispute settlement process before approaching MSEFC.
The Hindu
05-05-2025
- Business
- The Hindu
‘Benefits of scheme for revival of NPA account is not permissible when MSME is closed or wound up'
The High Court of Karnataka has said that benefits of the scheme for restructuring or revival/rehabilitation of a bank account, which has become a non-performing asset (NPA), of a micro, small and medium enterprise (MSME) is permissible under the law only if the MSME is functioning. Justice M. Nagaprasanna passed the order while rejecting a petition filed by M/s Metro Steel Section, which has questioned the proceedings initiated by the State Bank of India to recover about ₹18.5 crore loan due to the bank from the petitioner-firm. It was contended on behalf of the petitioner that the benefit of rectification and restructuring of loan amount as has been provided in the notification, issued by the Reserve Bank of India (RBI) in 2015 under Section 19 of the MSME Development Act, 2006, ought to have been considered prior to resorting to recovering proceedings under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. However, the High Court said that the benefit of the RBI's notification and its interpretation by the apex court in the case of Pro Knits vs. Board of Directors of Canara Bank would not be available to the petitioner-firm as it was already closed when the bank resorted to recovery proceedings as stipulated in the 2015 notification of the RBI. The court also pointed out that during the pendency of its petition, the petitioner-firm communicated to the bank indicating that it had wound up the business and closed the operation two years ago. 'If the firm has wound up the business and closed the operations two years ago, it cannot take the benefit of the firm being a MSME and the notifications issued under the MSMED Act or even the judgement of the apex court in Pro Knits case,' the court said.
