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

Sundaram Textiles, a micro enterprise in Tiruppur, has an unpaid bill from a Mumbai buyer for goods supplied. Under the MSMED Act, 2006, which body may it approach with a reference for this dispute over the amount due?

The supplier may make a reference to the Micro and Small Enterprises Facilitation Council. Section 18 lets any party to a dispute over an amount due under section 17 approach the Council, notwithstanding any other law in force.

  1. AMicro and Small Enterprises Facilitation CouncilCorrect
  2. BAdvisory Committee constituted by the Central Government
  3. CAuthority with which the memorandum is filed by medium enterprises
  4. DRegistrar of Companies of the buyer's State

Explanation

Section 18(1) allows any party to a dispute over an amount due under section 17 to make a reference to the Micro and Small Enterprises Facilitation Council. The other bodies named have no such role in resolving payment disputes.

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