Business Ecosystem

Feb, 2014

Avoid Early Settlement With Defendants With Lawsuit Cash Advances

Ready cash can be of great solace, when in financial difficulty. Especially, if you are going through a lawsuit under the personal injury law and you have to undertake different medical expenses and other daily expenses.

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09 Sep 2013 (09:20:27)
Dear SME Presidents & SME Industry Leaders, A breather of prompt payment recovery for MSME during tough economic times! Request you to print in the magazine for MSME members. A recent decision by the Hon’ble High Court of Chennai in the case of Goodyear India Ltd Vs. Norton Intec Rubber (p) Ltd has up held the Legislatory intent of providing quick and prompt payment provisions contained in Chapter V of MSMED act 2006. The delayed payment provisions in MSMED act are being considered four times by the legislators for improvement with an intent to aid SSI Suppliers secure quick payments. Thus Arbitration and conciliation provisions are made statutorily applicable for payment delays and related disputes between the SME supplier and buyers. Where any buyer makes delay in making payment beyond 45 days from the date of supply, the SME supplier can approach MSEFC (Micro Small Enterprises Facilitation Council) set up under MSMED act 2006 in every state to obtain a decree or an award along with interest as provided under MSMED act within 90 days. The appeal provisions for contesting a decree or award passed by the concerned MSEFC provided under section 19 of the MSMED act with mandatory pre-deposit of 75% of the award amount including interest are generally by passed by buyers under one or the other pretext legally protracting the litigation years long without any relief to SME as envisaged under the MSMED act. The Hon’ble High court of Chennai upholding the legislatory scheme and intent of aiding SME suppliers with prompt payment recovery has harmoniously considered statutory time as in section 34(3) of Arbitration and Conciliation Act 1996 to entertain an appeal to set aside the decree or award passed by concerned MSEFC under Section 19 of MSMED act. Implementation of Madras high Court order will ensure mandatory 75% pre-deposit being made within 120 days on receipt of award and Micro Small Enterprise units are bound to get relief thereafter as provided at proviso of section 19 of MSMED act avoiding incidence sickness. Please find enclosed the copy of the case reported. Request for wide circulation to all MSME members and associations. Contribution U.SRINIVAS ANNAPURNA ELECTRONICS