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CS Executive · Setting Up of Business, Industrial and Labour Laws · Micro, Small and Medium Enterprises

A reference is made to a State Micro and Small Enterprises Facilitation Council by a small supplier, Kavya Plastics, over delayed payment. Under the MSMED Act, 2006, within what period must the reference be decided from the date it is made?

The reference must be decided within ninety days from the date it is made. Section 18(5) of the MSMED Act, 2006 prescribes this period for every reference to the Micro and Small Enterprises Facilitation Council over amounts due.

  1. AThirty days
  2. BSixty days
  3. CNinety daysCorrect
  4. DOne hundred and eighty days

Explanation

Section 18(5) states that every reference under that section shall be decided within ninety days from the date of making the reference. The 180-day figure appears elsewhere in the Act in connection with filing a memorandum for pre-Act units, so it does not apply here.

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