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

Ravi Engineering, a small enterprise, wants to recover delayed dues by invoking the statutory dispute mechanism. Which statement about who may use the Facilitation Council route under the MSMED Act, 2006 is correct?

Any party to the dispute may make a reference to the Facilitation Council about the amount due, notwithstanding any other law in force. It is not restricted to the buyer, and no earlier civil court proceeding is required before approaching the Council.

  1. AAny party to a dispute may make a reference regarding an amount due, notwithstanding any other law in forceCorrect
  2. BOnly the buyer may make a reference
  3. COnly a supplier registered with the Central Government may make a reference
  4. DA reference can be made only after a civil court suit is dismissed

Explanation

Section 18(1) says that, notwithstanding anything in any other law, any party to a dispute may make a reference to the Council regarding an amount due under section 17. It is not limited to the buyer, and no prior civil suit is required.

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