Civil & Commercial

Micro, Small and Medium Enterprises Development Act, 2006

2006 · Ministry of MSME · 32 sections

Classifies MSMEs and, in Chapter V, protects them against delayed payment with statutory compound interest and a Facilitation Council conciliation-then-arbitration route.

Most-invoked sections

MSMED Act · 15

Liability of buyer to make payment

The buyer shall make payment on or before the agreed date, which cannot exceed forty-five days from the day of acceptance or deemed acceptance.

MSMED Act · 16

Interest on delayed payment

Where the buyer fails to pay, it is liable to pay compound interest with monthly rests at three times the bank rate notified by the RBI.

MSMED Act · 18

Reference to Micro and Small Enterprises Facilitation Council

Any party may refer a dispute to the Facilitation Council, which conducts conciliation and, failing settlement, arbitration under the A&C Act; to be decided within ninety days.

MSMED Act · 19

Application for setting aside decree or award

No application to set aside an award shall be entertained unless the applicant (other than the supplier) deposits seventy-five per cent of the award amount.

MSMED Act · 24

Overriding effect

Sections 15 to 23 have effect notwithstanding anything inconsistent in any other law for the time being in force.

The text shown is a working summary used inside Nyaya for grounding and UI preview. For verbatim reproduction, refer to the bare Act published on indiacode.nic.in.