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1. |
(1) |
CHAPTER 1
PRELIMINARY
This Act may be called the Micro, Small and Medium
Enterprises Development Act, 2006. |
Short title and
commencement. |
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(2) |
It shall come into force on such date as
the Central Government may, by notification, appoint; and
different dates may be appointed for different provisions of
this Act and any reference in any such provision to the
commencement of this Act shall be construed as a reference to
the coming into force of that provision. |
Definitions.
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65 of 1951
61 of 1981
2 of 1934
1 of 1956
1 of 1956
39 of 1989 |
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In this Act, unless the
context otherwise requires,-
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(a) |
“Advisory Committee” means the committee constituted
by the Central Government under sub-section (2) of
section 7; |
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(b)
(c) |
“appointed day” means the day following immediately
after the expiry of the period of fifteen days from the
day of acceptance or the day of deemed acceptance of any
goods or any services by a buyer from a supplier.
Explanation – For the purpose of this clause,-
| (i) |
“the day of acceptance” means,-
| (a) |
the day of the actual delivery
of goods or the rendering of services; or
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| (b) |
where any objection is made in writing by
the buyer regarding acceptance of goods or
services within fifteen days from the day of the
delivery of goods or the rendering of services,
the day on which such objection is removed by
the supplier; |
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| (ii) |
“the day of deemed acceptance” means, where no
objection is made in writing by the buyer
regarding acceptance of goods or services within
fifteen days from the day of the delivery of goods
or the rendering of services, the day of the
actual delivery of goods or the rendering of
services; |
“Board” means the National Board for Micro, Small and
Medium Enterprises established under section 3;
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| (d) |
“buyer” means whoever buys any goods or
receives any services from a supplier for consideration;
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| (e) |
“enterprise” means an industrial
undertaking or a business concern or any other
establishment, by whatever name called, engaged in the
manufacture or production of goods, in any manner,
pertaining to any industry specified in the First
Schedule to the Industries (Development and Regulation)
Act, 1951 or engaged in providing or rendering of any
service or services; |
| (f) |
“goods” means every kind of movable property other
than actionable claims and money; |
| (g) |
“medium enterprise” means an
enterprise classified as such under
sub-clause (iii) of clause (a) or sub-clause (iii) of
clause (b) of sub-section(1) of section 7; |
| (h) |
“micro enterprise” means an enterprise classified as
such under sub-clause (i) of clause (a) or sub-clause
(i) of clause (b) of sub-section (1) of section 7 ;
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| (i) |
“National Bank” means the National Bank for
Agriculture and Rural Development established under
section 3 of the National Bank for Agriculture and Rural
Development Act, 1981; |
| (j) |
“notification” means a notification published in the
Official Gazette; |
| (k) |
“prescribed” means prescribed by rules made under
this Act; |
| (l) |
“Reserve Bank” means the Reserve Bank of India
constituted under section 3 of the Reserve Bank of India
Act, 1934; |
| (m) |
“small enterprise” means an enterprise classified as
such under sub-clause (ii) of clause (a) or sub-clause
(ii) of clause (b) of sub-section (1) of section 7;
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| (n) |
“supplier” means a micro or small enterprise, which
has filed a memorandum with the authority referred to in
clause (a) of sub-section (1) of section 8, and
includes, – |
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| (i) |
the National Small Industries Corporation,
being a company, registered under the Companies
Act, 1956; |
| (ii) |
the Small Industries Development Corporation of
a State or a Union territory, by whatever name
called, being a company registered under the
Companies Act, 1956; |
| (iii) |
any company, cooperative society, society,
trust or a body, by whatever name called,
registered or constituted under any law for the
time being in force and engaged in selling goods
produced by micro or small enterprises and
rendering services which are provided by such
enterprises; | |
| (o) |
“Small Industries Bank” means the Small Industries
Development Bank of India established under sub-section
(1) of section 3 of the Small Industries Development
Bank of India Act, 1989; |
| (p) |
“State Government”, in relation to a Union territory,
means the Administrator thereof appointed under article
239 of the Constitution. | |
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CHAPTER II
NATIONAL BOARD FOR MICRO, SMALL AND
MEDIUM ENTERPRISES |
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3. |
(1) |
With effect from such date as the Central
Government may, by notification, appoint, there shall be
established, for the purposes of this Act, a Board to be
known as the National Board for Micro, Small and Medium
Enterprises. |
Establishment of
Board. |
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(2) |
The head office of the
Board shall be at Delhi |
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(3) |
The Board shall consist
of the following members, namely:- |
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| (a) |
the Minister in charge of the Ministry or Department
of the Central Government having administrative control
of the micro, small and medium enterprises who shall be
the ex officio Chairperson of the Board;
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| (b) |
the Minister of State or a Deputy Minister, if any,
in the Ministry or Department of the Central Government
having administrative control of the micro, small and
medium enterprises who shall be ex officio
Vice-Chairperson of the Board, and where there is no
such Minister of State or Deputy Minister, such person
as may be appointed by the Central Government to be the
Vice-Chairperson of the Board; |
| (c) |
six Ministers of the State Governments having
administrative control of the departments of small scale
industries or, as the case may be, micro, small and
medium enterprises , to be appointed by
the Central Government to represent such regions of the
country as may be notified by the Central Government in
this behalf, ex officio ; |
| (d) |
three members of Parliament of whom two shall be
elected by the House of the People and one by the
Council of States; |
| (e) |
the Administrator of a Union territory to be
appointed by the Central Government, ex officio;
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| (f) |
the Secretary to the Government of India in charge of
the Ministry or Department of the Central Government
having administrative control of the micro, small and
medium enterprises, ex officio ; |
| (g) |
four Secretaries to the Government of India, to
represent the Ministries of the Central Government
dealing with commerce and industry, finance, food
processing industries, labour and planning to be
appointed by the Central Government, ex officio ;
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| (h) |
the Chairman of the Board of Directors of the
National Bank, ex officio ; |
| (i) |
the chairman and managing director of the Board
of Directors of the Small Industries Bank, ex
officio ; |
| (j) |
the chairman, Indian Banks Association, ex officio ;
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| (k) |
one officer of the Reserve Bank, not below the rank
of an Executive Director, to be appointed by the Central
Government to represent the Reserve Bank; |
| (l) |
twenty persons to represent the associations of
micro, small and medium enterprises, including not less
than three persons representing associations of women's
enterprises and not less than three persons representing
associations of micro enterprises, to be appointed by
the Central Government; |
| (m) |
three persons of eminence, one each from the fields
of economics, industry and science and technology, not
less than one of whom shall be a woman, to be appointed
by the Central Government; |
| (n) |
two representatives of Central Trade Union
Organisation, to be appointed by the Central Government;
and > |
| (o) |
one officer not below the rank of Joint Secretary to
the Government of India in the Ministry or Department of
the Central Government having administrative control of
the small and medium enterprises to be appointed by the
Central Government, who shall be the Member-Secretary of
the Board, ex officio | |
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4. |
The term of office of the members of
the Board, other than ex officio members of the Board, the
manner of filling vacancies, and the procedure to be followed
in the discharge of their functions by the members of the
Board, shall be such as may be prescribed; Provided that the
term of office of an ex officio member of the Board, shall
continue so long as he holds the office by virtue of which he
is such a member. |
Removal of member from Board. |
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5. |
No act or proceedings of the Board
shall be invalid merely by reason of-
| (a) |
any vacancy in, or any defect in the constitution of,
the Board; or |
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(b) |
any defect in the appointment of a person acting as a
member of the Board; or |
| (c) |
any irregularity in the procedure of the Board not
affecting the merits of the case.
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Functions of Board. |
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6. |
The Board shall meet at least once in
every three months in a year. |
Powers and functions of
Member-Secretary of Board |
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7. |
The Board may associate with itself,
in such manner and for such purposes as it may deem necessary,
any person or persons whose assistance or advice it may desire
in complying with any of the provisions of
this Act and a person so associated shall have the right to
take part in the discussions of the Board relevant to the
purposes for which he has been associated but shall not have
the right to vote. |
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8. |
Without prejudice to sub-section (7)
the Chairperson of the Board shall, for not less than two of
the meetings of the Board in a year, invite such Ministers of
the State Governments having administrative control of the
departments of small scale industries or, as the case may be,
the micro, small and medium enterprises, or the Administrators
of Union territories and representatives of such other
associations of micro, small and medium enterprises, as he may
deem necessary for carrying out the purposes of this Act. |
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9. |
It is hereby declared that the office
of member of the Board shall not disqualify its holder for
being chosen as, or for being, a member of either House of
Parliament. |
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4. |
1) |
The Central Government may remove a
member of the Board from it, if he–
| (a) |
is, or at any time has been, adjudged as insolvent;
or |
| (b) |
is, or becomes, of unsound mind and stands so
declared by a competent court; or |
| (c) |
refuses to act or becomes incapable of acting as a
member of the Board ; or |
| (d) |
has been convicted of an offence which, in the
opinion of the Central Government, involves moral
turpitude; or |
| (e) |
has so abused, in the opinion of the Central
Government, his position as a member of the Board as to
render his continuance in the Board detrimental to the
interests of the general public | |
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2) |
Notwithstanding anything contained in
sub-section (1), no member shall be removed from his office on
the grounds specified in clauses (c) to (e) of that
sub-section unless he has been given a reasonable opportunity
of being heard in the matter.
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5. |
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The Board shall, subject to the
general directions of the Central Government,
perform all or any of
the following functions, namely:-
| (a) |
examine the factors affecting the promotion and
development of micro, small and medium enterprises and
review the policies and programmes of the Central
Government in regard to
facilitating the promotion and
development and enhancing the competitiveness of such
enterprises and the impact thereof on
such enterprises; |
| (b) |
make recommendations on matters referred to in
clause (a) or on any other matter referred to it by the
Central Government which, in the opinion of that
Government, is necessary or expedient for facilitating
the promotion anddevelopment and enhancing the
competitiveness of the micro, small and medium
enterprises; and |
| (c) |
advise the Central Government on the use of the Fund
or Funds constituted under section 12.
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6. |
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Subject to other provisions of this
Act, the Member-Secretary of the Board shall exercise such
powers and perform such functions as may be prescribed. |
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CHAPTER III
CLASSIFICATION OF ENTERPRISES, ADVISORY COMMITEE
AND MEMORANDUM OF MICRO, SMALL AND MEDIUM ENTERPRISES
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Classification of enterprises. |
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65 of 1951
65 of 1951
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7. |
1) |
Notwithstanding anything contained in
section 11B of the Industries (Development and Regulation)
Act, 1951, the Central Government may, for the purposes of
this Act, by notification and having regard to the provisions
of sub-sections (4) and (5), classify any class or classes of
enterprises, whether proprietorship, Hindu undivided family,
association of persons, co-operative society, partnership
firm, company or undertaking, by whatever name called, -
| (a) |
in the case of the enterprises engaged in the
manufacture or production of goods pertaining to any
industry specified in the first schedule to the
Industries (Development and Regulation) Act, 1951, as –
| (i) |
a micro enterprise, where the investment in
plant and machinery does not exceed twenty five
lakh rupees; |
| (ii) |
a small enterprise, where the investment in
plant and machinery is more than twenty five lakh
rupees but does not exceed five crore rupees; or
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| (iii) |
a medium enterprise, where the investment in
plant and machinery is more than five
crore rupees but does not exceed ten crore rupees;
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| (b) |
in the case of the enterprises engaged in providing
or rendering of services, as –
| (i) |
a micro enterprise, where the
investment in equipment does not exceed ten lakh
rupees; |
| (ii) |
a small enterprise, where the investment in
equipment is more than ten lakh rupees but does
not exceed two crore rupees; or |
| (iii) |
a medium enterprise, where the investment in
equipment is more than two crore rupees but does
not exceed five crore rupees
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Explanation 1 For the removal of doubt, it is hereby
clarified that in calculating the investment in plant and
machinery, the cost of pollution control, research and
development, industrial safety devices and such other items as
may be specified, by notification, shall be excluded.
Explanation 2 It is clarified that the provisions of
section 29B of the Industries (Development and Regulation)
Act, 1951, shall be applicable to the enterprises specified in
sub-clauses (i) and (ii) of clause (a) of sub-section (l) of
this section. |
Advisory Committee |
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2) |
The Central Government shall, by
notification, constitute an Advisory Committee consisting of
the following members, namely:-
| (a) |
the Secretary to the Government of India in the
Ministry or Department of the Central Government having
administrative control of the small and medium
enterprises who shall be the Chairperson, ex officio ;
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| (b) |
not more than five officers of the Central Government
possessing necessary expertise in matters relating to
micro, small and medium enterprises, members, ex officio
; |
| (c) |
not more than three representatives of the State
Governments, members, ex officio ; and |
| (d) |
one representative each of the associations of micro,
small and medium enterprises, members, ex officio ;
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3) |
The Member- Secretary of the Board
shall also be the ex officio Member-Secretary of the Advisory
Committee.
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4) |
The Central Government shall, prior
to classifying any class or classes of enterprises under
sub-section (1), obtain the recommendations of the Advisory
Committee.
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5) |
The Advisory Committee shall examine
the matters referred to it by the Board in connection with any
subject referred to in section 5 and furnish its
recommendations of the Board.
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6) |
The Central Government may seek the
advice of the Advisory Committee on any of the matters
specified in section 9, 10, 11, 12 or 14 of Chapter IV.
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7) |
The State Government may seek advice
of the Advisory Committee on any of the matters specified in
the rules made under section 30.
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65 of 1951
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8) |
The Advisory Committee shall, after
considering the following matters, communicate its
recommendations or advice to the Central Government or, as the
case may be, State Government or the Board, namely:-
| (a) |
the level of employment in a class or classes of
enterprises; |
| (b) |
the level of investments in plant and machinery or
equipment, in a class or classes of enterprises;
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| (c) |
the need of higher investment in plant and machinery
or equipment for technological upgradation, employment
generation and enhanced competitiveness of the class or
classes of enterprises; |
| (d) |
the possibility of promoting and diffusing
entrepreneurship in micro, small or medium enterprises;
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| (e) |
the international standards for classification of
small and medium enterprises.
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9) |
Notwithstanding anything contained in
section 11B of the Industries (Development and Regulation)
Act, 1951 and clause (h) of section 2 of the Khadi and Village
Industries Commission Act, 1956, the Central Government may,
while classifying any class or classes of enterprises under
sub-section (1), vary, from time to time, the criterion of
investment and also consider criteria or standards in respect
of employment or turnover of the enterprises and include in
such classification the micro or tiny enterprises or the
village enterprises, as part of small enterprises.
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MemMemorandum of micro, small and
medium enterprises |
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65 of 1951
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8. |
1) |
Any person who intends to establish,-
| (a) |
a micro or small enterprise, may, at his discretion;
or |
| (b) |
a medium enterprise engaged in providing or rendering
of services may, at his discretion; or |
| (c) |
a medium enterprise engaged in the manufacture or
production of goods pertaining to any industry specified
in the First Schedule to the Industries (Development and
Regulation) Act, 1951, shall file the memorandum of
micro, small or, as the case may be, of medium
enterprise with such authority as may be specified by
the State Government under sub-section(4) or the Central
Government under sub-section (3):
Provided that any person who, before the commencement
of this Act, established—
| (a) |
a small scale industry and obtained a
registration certificate, may, at his discretion;
and |
| (b) |
an industry engaged in the manufacture or
production of goods pertaining to any industry
specified in the First Schedule to the Industries
(Development and Regulation) Act, 1951, having
investment in plant and machinery or more than one
crore rupees but not exceeding ten crore rupees
and, in pursuance of the notification of the
Government of India in the erstwhile Ministry of
Industry (Department of Industrial Development)
number S.O.477(E), dated the 25 TH July, 1991 file
an Industrial Entrepreneurs' Memorandum, shall
within one hundred and eighty days from the
commencement of this Act, file the memorandum, in
accordance with the provisions of this Act.
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2) |
The form of the memorandum, the
procedure of its filing and other matters incidental thereto
shall be such as may be notified by the Central Government
after obtaining the recommendations of the Advisory Committee
in this behalf.
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3) |
The authority with which the
memorandum shall be filed by a medium enterprise shall be such
as may be specified, by notification, by the Central
Government.
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4) |
The State Government shall, by
notification, specify the authority with which a micro or
small enterprise may file the memorandum.
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5) |
The authorities specified under
sub-sections (3) and (4) shall follow, for the purposes of
this section, the procedure notified by the Central Government
under sub-section (2).
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CHAPTER IV
MEASURES FOR PROMOTION, DEVELOPMENT AND ENHANCEMENT
OF COMPETITIVENESS OF MICRO, SMALL AND MEDIUM ENTERPRISES
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Measures for promotion and
development |
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9. |
1) |
The Central Government may, from time
to time, for the purposes of facilitating the promotion and
development and enhancing the competitiveness of micro, small
and medium enterprises, particularly of the micro and small
enterprises, by way of development of skill in the employees,
management and entrepreneurs, provisioning for technological
upgradation, providing marketing assistance or infrastructure
facilities and cluster development of such enterprises with a
view to strengthening backward and forward linkages, specify,
by notification, such programmes, guidelines or instructions,
as it may deem fit.
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10. |
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The policies and practices in respect
of credit to the micro, small and medium enterprises shall be
progressive and such as may be specified in the guidelines or
instructions issued by the Reserve Bank, from time to time, to
ensure timely and smooth flow of credit to such enterprises,
minimise the incidence of sickness among and enhance the
competitiveness of such enterprises.
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Credit facilities |
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11. |
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For facilitating promotion and
development of micro and small enterprises, the Central
Government or the State Government may, by order notify from
time to time, preference policies in respect of procurement of
goods and services, produced and provided by micro and small
enterprises, by its Ministries or departments, as the case may
be, or its aided institutions and public sector enterprises.
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Procurement preference policy. |
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12 |
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There shall be constituted ,
by notification, one or more Funds to be called by
such name as may be specified in the notification and there
shall be credited thereto any grants made by the Central
Government under section 13.
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Funds. |
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13. |
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The Central Government may, after due
appropriation made by Parliament by law in this behalf, credit
to the Fund or Funds by way of grants for the purposes of this
Act, such sums of money as that Government may consider
necessary to provide |
Grants by Central Government. |
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14. |
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| 1) |
The Central Government shall have the power to
administer the Fund or Funds in such manner as may be
prescribed. |
| 2) |
The Fund or Funds shall be utilised exclusively for
the measures specified in sub-section (1) of section 9.
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| 3) |
The Central Government shall be responsible for the
coordination and ensuring timely utilisation and release
of sums in accordance with such criteria as may be
prescribed | |
Administration and utilisation of
Fund or Funds. |
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CHAPTER V
DELAYED PAYMENTS TO MICRO AND SMALL ENTERPRISES
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15. |
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Where any supplier supplies any goods
or renders any services to any buyer, the buyer shall make
payment therefor on or before the date agreed upon between him
and the supplier in writing or, where there is no agreement in
this behalf, before the appointed day: Provided that in no
case the period agreed upon between the supplier and the buyer
in writing shall exceed forty-five days from the day of
acceptance or the day of deemed acceptance. |
Liability of buyer to make payment.
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16. |
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Where any buyer fails to make payment
of the amount to the supplier, as required under section 15,
the buyer shall, notwithstanding anything contained in any
agreement between the buyer and the supplier or in any law for
the time being in force, be liable to pay compound interest
with monthly rests to the supplier on that amount from the
appointed day or, as the case may be, from the date
immediately following the date agreed upon, at three times of
the bank rate notified by the Reserve Bank. |
Date from which and rate at which
interest is payable. |
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17. |
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For any goods supplied or services
rendered by the supplier, the buyer shall be liable to pay the
amount with interest thereon as provided under section 16. |
Recovery of amount due. |
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18. |
1) |
Notwithstanding anything contained in
any other law for the time being in force, any party to a
dispute may, with regard to any amount due under section 17,
make a reference to the Micro and Small Enterprises
Facilitation Council.
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Reference to Micro and Small
Enterprises Facilitation Council. |
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26 of 1996 |
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2) |
On receipt of a reference under
sub-section ( 1 ), the Council shall either itself
conduct conciliation in the matter or seek the assistance of
any institution or centre providing alternate dispute
resolution services by making a reference to such an
institution or centre, for conducting conciliation and the
provisions of sections 65 to 81 of the Arbitration and
Conciliation Act, 1996 shall apply to such a dispute as if the
conciliation was initiated under Part III of that Act. |
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3) |
Where the conciliation initiated
under sub-section ( 2 ) is not successful and stands
terminated without any settlement between the parties, the
Council shall either itself take up the dispute for
arbitration or refer it to any institution or centre providing
alternate dispute resolution services for such arbitration and
the provisions of the Arbitration and Conciliation Act, 1996,
shall then apply to the dispute as if the arbitration was in
pursuance of an arbitration agreement referred to in
sub-section ( 1 ) of section 7 of that Act.
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| 26 of 1996 |
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4) |
Notwithstanding anything contained in
any other law for the time being in force, the Micro and Small
Enterprises Facilitation Council or the centre providing
alternate dispute resolution services shall have jurisdiction
to act as an Arbitrator or Conciliator under this section in a
dispute between the supplier located within its jurisdiction
and a buyer located anywhere in India.
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5) |
Every reference made under this
section shall be decided within a period of ninety days from
the date of making such a reference. |
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19. |
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No application for setting aside any
decree, award or other order made either by the Council itself
or by any institution or centre providing alternate dispute
resolution services to which a reference is made by the
Council, shall be entertained by any court unless the
appellant (not being a supplier) has deposited with it
seventy-five per cent of the amount in terms of the decree,
award or, as the case may be, the other order in the manner
directed by such court: Provided that pending disposal of the
application to set aside the decree, award or order, the court
shall order that such percentage of the amount deposited shall
be paid to the supplier, as it considers reasonable under the
circumstances of the case subject to such conditions as it
deems necessary to impose. |
Application for setting aside decree,
award or order. |
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20. |
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The State Government shall, by
notification, establish one or more Micro and Small
Enterprises Facilitation Councils, at such places, exercising
such jurisdiction and for such areas, as mahy be specified in
he notification. |
Establishment of Micro and Small
Enterprises Facilitation Council |
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21. |
1) |
) The Micro and Small
Enterprise Facilitation Council shall consist of not less than
three but not more than five members to be appointed from
among the following categories, namely:-
| (i) |
Director of Industries, by whatever name called, or
any other officer not below the rank of such Director,
in the Department of the State Government having
administrative control of the small scale industries or,
as the case may be, micro, small and medium enterprises;
and |
| (ii) |
one or more office-bearers or representatives of
associations of micro or small industry or enterprises
in the State; and |
| (iii) |
one or more representatives of banks and financial
institutions lending to micro or small enterprises; or
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| (iv) |
one or more persons having special knowledge in the
field of industry, finance, law, trade or commerce
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2) |
The person appointed under clause (i)
of sub-section (1) shall be the chairperson of the Micro and
Small Enterprise Facilitation Council.
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3) |
The composition of the Micro and
Small Enterprise Facilitation Council, the manner of filling
vacancies of its members and the procedure to be followed in
the discharge of their functions by the members shall be such
as may be prescribed by the State Government.
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22) |
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Where any buyer is required to get
his annual accounts audited under any law for the time being
in force, such buyer shall furnish the following additional
information in his annual statement of accounts, namely:-
| (i) |
the principal amount and the interest due thereon (to
be shown separately) remaining unpaid to any supplier as
at the end of each accounting year; |
| (ii) |
the amount of interest paid by the buyer in terms of
section 18, along with the amounts of the payment made
to the supplier beyond the appointed day during each
accounting year; |
| (iii) |
the amount of interest due and payable for the period
of delay in making payment (which have been paid but
beyond the appointed day during the year) but without
adding the interest specified under this Act; |
| (iv) |
the amount of interest accrued and remaining unpaid
at the end of each accounting year; and |
| (v) |
the amount of further interest remaining due and
payable even in the succeeding years, until such date
when the interest dues as above are actually paid to the
small enterprise, for the purpose of disallowance as a
deductible expenditure under section 23.
| |
Requirement to specify unpaid amount
with interest in the annual statement of accounts. |
|
43 of 1961. |
23. |
|
Notwithstanding anything contained in
the Income-tax Act, 1961, the amount of interest payable or
paid by any buyer, under or in accordance with the provisions
of this Act, shall not, for the purposes of computation of
income under the Income-tax Act, 1961, be allowed as
deduction.
|
Interest not to be allowed as
deduction from income. |
| |
24. |
|
The provisions of sections 15 to 23
shall have effect notwithstanding anything inconsistent
therewith contained in any other law for the time being in
force. |
Over-riding effect. |
| 1 of 1996 |
25. |
|
Notwithstanding anything contained in
any law for the time being in force, the Central Government
may, with a view to facilitating closure of business by a
micro, small or medium enterprise, not being a company
registered under the Companies Act, 1956, notify a scheme
within one year from the date of commencement of this Act
. |
Scheme for closure of business of
micro, small and medium enterprises |
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CHAPTER VI
MISCELLANEOUS |
|
| |
26. |
1) |
The Central Government or State
Government may appoint such officers with such designations
and such other employees as it thinks fit for the purposes of
this Act and may entrust to them such of the powers and
functions under this Act as it may deem fit. |
Appointment of officers and other
employees. |
| |
|
2) |
The Officers appointed under
sub-section (1) may, for the purposes of this Act, by order
require any person to furnish such information, in such form,
as may be prescribed. |
|
| |
27. |
1) |
Whoever intentionally contravenes or
attempts to contravene or abets the contravention of any of
the provisions contained in sub-section (1) of section 8 or
sub-section (2) of section 26 shall be punishable -
| (a) |
in the case of the first conviction, with fine which
may extend to rupees one thousand; and |
| (b) |
in the case of any second or subsequent conviction,
with fine which shall not be less than rupees one
thousand but may extend to rupees ten thousand
| |
Penalties |
| |
|
2) |
Where a buyer contravenes the
provisions of section 22, he shall be punishable with a fine
which shall not be less than rupees ten thousand.
|
|
| |
28. |
|
No court inferior to that of a
Metropolitan Magistrate or a Magistrate of the first class
shall try any offence punishable under this Act. |
Jurisdiction of courts. |
| |
29. |
1) |
The Central Government may, by
notification, make rules to carry out the provisions of this
Act. |
Power to make rules. |
| |
|
2) |
In particular, and without prejudice
to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:-
| (a) |
the term of office of the members of the Board, the
manner of filling vacancies, and the procedure to be
followed in the discharge of functions by the members of
the Board under sub-section (4) of section 3; |
| (b) |
the powers and functions of the Member-Secretary
under section 6; |
| (c) |
the manner in which the Fund may be administered
under sub-section (1) of section 14; |
| (d) |
the criteria based on which sums may be released
under sub-section (3) of section 14; |
| (e) |
the information to be furnished and the form in which
it is to be furnished under sub-section (2) of section
26; and |
| (f) |
any other matter which is to be or may be prescribed
under this Act. | |
|
| |
|
3) |
Every notification issued under
section 9 and every rule made by the Central Government under
this section shall be laid, as soon as may be after it is
made, before each House of Parliament, while it is in session,
for a total period of thirty days which may be comprised in
one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the
session or the successive sessions aforesaid, both Houses
agree in making any modification in the notification or rule
or both Houses agree that the notification or rule should not
be made, the notification or rule shall thereafter have effect
only in such modified form or be of no effect, as the case may
be; so, however, that any such modification or annulment shall
be without prejudice to the validity of anything previously
done under that notification or rule. |
|
| |
30. |
1) |
The State Government may, by
notification, make rules to carry out the provisions of this
Act. |
Power to make rules by State
Government. |
| |
|
2) |
In particular, and without prejudice
to the generality of the foregoing power, such rule may
provide for all or any of the following matters, namely:-
| (a) |
the composition of the Micro and Small Enterprise
Facilitation Council, the manner of filling vacancies of
the members and the procedure to be followed in the
discharge of their functions by the members of the Micro
and Small Enterprise Facilitation Council under
sub-section (3) of section 21; |
| (b) |
any other matter which is to be or may be, prescribed
under this Act. | |
|
| |
|
3) |
The rule made under this section
shall, as soon as may be after it is made, be laid before each
House of the State Legislature where there are two Houses, and
where there is one House of the State Legislature, before that
House. |
|
| |
31. |
1) |
If any difficulty arises in giving
effect to the provisions of this Act, the Central Government
may, by order published in the Official Gazette, make such
provisions not inconsistent with the provisions of this Act as
may appear to be necessary for removing the difficulty:
Provided that no order shall be made under this section after
the expiry of two years from the commencement of this Act. |
Power to remove difficulties. |
| |
|
2) |
Every order made under this section
shall, as soon as may be after it is made, be laid before each
House of Parliament.
|
|
| |
32. |
1) |
The Interest on Delayed Payments to
Small Scale and Ancillary Industrial Undertakings Act, 1993 is
hereby repealed.
|
Repeal of Act 32 of 1993 .
|
| |
|
2) |
Notwithstanding such repeal, anything
done or any action taken under the Act so repealed under
sub-section (1) shall be deemed to have been done or taken
under the corresponding provisions of this Act. |
|