In exercise of the powers conferred by
Section 30 read with sub-section (3) of Section 21 and clause (p) of Section 2
of the Micro, Small and Medium Enterprise Development Act, 2006 (27 of 2006),
the Lt. Governor of National Capital Territory of Delhi hereby makes the
following rules, namely: PRELIMINARY (1)
These
rules may be called the Delhi Micro and Small Enterprises Facilitation Council
Rules, 2007. (2)
They
shall come into force with effect from the date of their notification in the
Delhi Gazette. In these rules, unless the context otherwise
requires, (a)
"Act"
means the Micro, Small and Medium Enterprises Development Act, 2006 (27 of
2006); (b)
"Arbitration
and Conciliation Act" means the Arbitration and Conciliation Act, 1996 (26
of 1996); (c)
"Chairperson"
means the Chairperson of the Council appointed under clause (i) of Sub-section
(1) of Section 21 of the Act; (d)
"Council"
means the (sic) Enterprises Facilitation Council, established by the Government
under Section 20 of the Act, (e)
"Delhi"
means the National Capital Territory of Delhi; (f)
"Government"
means the Lt. Governor of the National Capital Territory of Delhi appointed by
the President under article 239 and designated as such under article 239AA of
the Constitution; (g)
"Institute"
means an institution or centre providing alternate dispute resolution service
referred to in sub-sections (2) and (3) of Section 18 of the Act; (h)
"Lt.
Governor" means the Lieutenant Governor of the National Capital Territory
of Delhi appointed by the President under article 239 of the Constitution. All
reference to Government hereinafter shall, in the case of the Government of
N.C.T. of Delhi, mean the Administrator; (i)
"member"
means a member of the Council; (j)
"section"
means a section of the Act; (k)
The
words and expressions used and not defined, but defined in the Act shall have
the meanings assigned to them in the Act. (a)
The
Government shall appoint the representatives, specified in clauses (ii), (iii)
or (iv) of sub-section (1) of Section 21, as member of the Council. (b)
When
a member of the Council dies or resigns or is deemed to have resigned or is
removed from office or becomes incapable of acting as a member, the Government
may, by notification in the Official Gazette; appoint a person to fill that
vacancy. (c)
A
member, other than the Chairperson, shall hold office for a period not
exceeding two years from the date of his appointment. (d)
A
member appointed under clauses (ii), (iii) and (iv) of sub-section (1) of
Section 21 of the Act shall cease to be a member of the Council if he ceases to
represent the category or interest from which he was so appointed. (e)
Any
member of the Council may resign from the Council by tendering one month's
notice in writing to the Government. The power to accept the resignation of a
member shall vest in the Government. (f)
The
Government may remove any member from office, (i)
If
he is of unsound mind and stands so declared by a competent court, of (ii)
If
he becomes bankrupt or insolvent of suspends payment to his creditors, or if he
is convicted of any offence which is punishable under the Indian Penal Code.
1860 (Act XI.V of 1860); or (iii)
If
he absents himself from three consecutive meetings of the Council without the
leave of the Chairperson, and in any case from five consecutive meetings; or (iv)
If
he acquires such financial or other interest as is likely, in the opinion of
the Government, to affect prejudicially his functions as a member. (i)
The
Council shall meet at least once a month. (ii)
At
least seven days' notice shall ordinarily be given for any meeting. However, in
case of urgency a meeting may he called at such shorter notice as the
Chairperson may consider sufficient. (iii)
The
Council may appoint/or engage the services of one or more experts in terms of
Section 26 of the Arbitration and Conciliation Act. (iv)
The
Council or a party to the dispute with the approval of the Council may apply to
the court under Section 27 of the Arbitration and Conciliation Act lot
assistance in taking evidence. (v)
The
reference/application of the aggrieved micro or small enterprise supplier shall
contain full particulars of the supplier and its status, supplied goods or
services, terms of payment, if any, agreed between the supplier and buyer,
actual payment received with date, amount due and the interest duly calculated
under Section 16 of the Act, supported by an affidavit, with necessary court
fee stamp affixed thereon. The Chairperson of the Council may require any
petitioner to provide further particular of the claim or any relevant documents
in support of the claim as he may consider necessary for the purpose of the
proceedings. If the petitioner fails or omits to do so within fifteen days of
receipt of such communication or within such further time as the Chairperson
may, for sufficient cause, allow, the Council may terminate the proceedings
without prejudice to the right of the petitioner to make fresh reference if he
is otherwise entitled so to do. The petitioner shall also simultaneously send a
copy of the reference to the buyer or buyers against whom the reference is
directed. (vi)
The
reference/application shall be acknowledged forthwith if it is delivered at the
office of the Council. Where the reference/application is received by
registered post, its receipt shall be acknowledged on the same day. The
Chairperson shall cause the buyer to furnish his detailed response to the reference
within fifteen days of receipt of the reference by the buyer or within such
further time not exceeding fifteen days, as he may, for sufficient cause,
allow. (vii)
On
receipt of a reference under Section 18 of the Act, the Chairperson of the
Council shall cause the reference and the buyers response thereto to be
examined and, on being satisfied with the reference making a prima facie case
of delayed payment, cause the reference to be placed before the Council at its
next immediate meeting for consideration The Chairperson shall also ensure that
each reference received within two weeks of the date of the last preceding
meeting of the Council is examined and, if found in order, is placed for
consideration of the Council at its next immediate meeting. (viii)
The
Council shall either itself conduct conciliation in each reference placed
before it or seek the assistance of any institute or centre providing alternate
dispute resolution services by making a reference to such an institution or
centre, for conducting conciliation. The provisions of Sections 65 to 81 of the
Arbitration and Conciliation Act, 1996 shall apply to such a reference as if
the conciliation was initiated under part III of that Act. (ix)
The
Council or the Institute to which it has been referred for conciliation shall
require the supplier and the buyer concerned to appear before it by issuing
notices to both parties in this behalf. On the appearance of both parties, the
Council or the institute shall first make efforts to bring about conciliation
between the buyer and the supplier The institute shall submit its report to the
Council within fifteen days of reference from the Council or within such period
as the Council may specify. (x)
When
such conciliation does not lead to settlement of the dispute, the Council shall
either itself act as an Arbitrator for final settlement of the dispute or refer
it to an institute for such arbitration, in accordance with the provisions of
the Arbitration and Conciliation Act, 1996. The supplier or the buyer may,
either in person or through his lawyer registered with any court, present his
case before the Council or the institute during the arbitration proceedings The
institute shall submit its report to the Council within such time as the
Council may stipulate. (xi)
Any
decision of the Council shall be made by a majority of its members present at
the meeting of the Council. (xii)
The
Council shall make an arbitral award in accordance with Section 31 of the
Arbitration and Conciliation Act, 1996 and within the time specified in
sub-section (5) of Section 18 of the Act. The award shall be stamped in
accordance with the relevant law in force. Copies of the award shall be made
available within seven days of filing of an application. (xiii)
The
provisions of Sections 15 to 23 of the Act shall have effect notwithstanding
anything inconsistent therewith contained in any other law for the time being
in force. (xiv)
The
Chairperson or any other officer authorized by the Chairperson shall forward
the proceedings of every meeting of the Council including annual progress
report of the Council to the Member Secretary of the Advisory Committee
constituted under sub-section (3) of Section 7 of the Act.DELHI
MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL RULES, 2007
PREAMBLE