The Micro, Small and Medium Enterprises Development Act

Liability of buyer to make payment

Date from which and rate at which interest is payable

Recovery of amount due

Reference to Micro and small Enterprises Facilitation Council

Application for setting aside decree, award or order

Establishment of Micro and Small Enterprises Facilitation Council

Composition of Micro and Small Enterprises Facilitation Council

Requirement to specify unpaid amount with interest in the annual statement of accounts

Interest not to be allowed as deduction from income

Overriding effect

Scheme for closure of business of micro, small and medium enterprises


DELAYED PAYMENTS TO MICRO AND SMALL ENTERPRISES


Where any buyer fails to make
payment of the amount to the supplier, as required under section 15, the buyer shall, notwithstanding
anything contained in any agreement between the buyer and the supplier or in any law for the time being
in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the
appointed day or, as the case may be, from the date immediately following the date agreed upon, at three
times of the bank rate notified by the Reserve Bank.


LAWGIST

# 16 Date from which and rate at which interest is payable