In exercise of the powers
conferred by sub-section (1) of section 30 of the Micro, Small and Medium
Enterprises Development Act, 2006 (Central Act 27 of 2006) and in supersession
of the Kerala Micro and Small Enterprises Facilitation Council Rules, 2019
issued by notification under G. O. (P) No. 23/2019/Ind. dated 22nd October,
2019 and published as S.R.O. No. 947/2019 in the Kerala Gazette Extraordinary
No. 2972 dated 3rd December, 2019, the Government of Kerala hereby make the
following rules, namely: (1) These
rules may be called the Kerala Micro and Small Enterprises Facilitation Council
Rules, 2023. (2) It shall
come into force at once. (1) In these
rules, unless the context otherwise requires, (a) "Act"
means the Micro, Small and Medium Enterprises Development Act, 2006 (Central
Act 27 of 2006); (b) "Arbitration
and Conciliation Act" means the Arbitration and Conciliation Act, 1996
(Central Act 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 State Micro and Small Enterprises Facilitation Council and Regional
Micro and Small Enterprises Facilitation Council, established by the Government
under section 20 of the Act; (e) "Government"
means the Government of Kerala; (f) "Institute"
means any institution or centre providing alternate dispute resolution services
referred to in sub-sections (2) and (3) of section 18 of the Act; (g) "member"
means a member of the Council; (h) "MSE
unit" means a Micro or Small Enterprise as per the provisions of the Act; (i) "Registration"
means Udyam Registration or any other Registration issued by Ministry of Micro,
Small and Medium Enterprises, Government of India. (2) The words
and expressions used but not defined in these rules and defined in the Act
shall have the meanings, respectively assigned to them in the Act. (1) The
Government shall, establish State Micro and Small Enterprises Facilitation
Council at the Directorate of Industries and Commerce, Thiruvananthapuram and
three Regional Micro and Small Enterprises Facilitation Councils at District
Industries Centres Thiruvananthapuram, Ernakulam and Kozhikode. (2) The
Government shall designate the Director of Industries and Commerce, and the
General Manager of the District Industries Centre as the Chairperson to the
State Council and Regional Council respectively to issue notices or orders on
behalf of the Council. (3) The Law
Officer, Directorate of Industries and Commerce shall be the Legal Expert of
the State Micro and Small Enterprises Facilitation Council. The State and
Regional Micro and Small Enterprises Facilitation Council can seek legal
assistance, if necessary, at the discretion of the Council from legal experts
empanelled by Government for this Purpose. (4) The
secretariat of the State Council shall be the Directorate of Industries and
Commerce and that of the Regional Council shall be District Industries Centre,
Thiruvananthapuram, District Industries Centre, Ernakulam and the District
Industries Centre, Kozhikode. (5) Each
reference should be attached with fee or processing charges of (???) 1000
(Rupees One thousand only) by a Demand Draft in favour of the Chairperson
concerned in respect of the State and Regional Micro and Small Enterprises
Facilitation Councils as may be approved by the Government and with an
undertaking from the aggrieved MSE unit as per Annexure I that it has not moved
a reference before the Civil Court on the same dispute along with all
supporting documents as per check list in Annexure II. The State Micro and Small Enterprises Facilitation Council shall
consist of the following members to be appointed by the Government; (a) The
Director of Industries and Commerce Chairperson; (b) The
Convenor, State Level Banker's Committee (SLBC) or the Deputy General Manager, Lead
Bank in Kerala; (c) President
or Secretary, Kerala State Small Industries Association (KSSIA); (d) An
Officer not below the rank of Additional Secretary to Government from the Law
Department, Government Secretariat. The Regional Micro and Small Enterprises Facilitation Council
shall consist of the following members to be appointed by the Government: (a) The
General Manager, District Industries Centre, Thiruvananthapuram/Ernakulam/Kozhikkode
Chairperson; (b) The Lead
District Bank Manager (LDM), (District to which Regional Council is situated); (c) The State
Vice President (South Zone for the council located in
Thiruvananthapuram/Central Zone for the Council located in Ernakulam/North Zone
for the Council located in Kozhikode), Kerala State Small Industries
Association (KSSIA); (d) An
Officer not below the rank of Deputy Secretary to Government from the Law
Department, Government Secretariat or the District Law Officer where the
Regional Council is situated. (1) The
application of the aggrieved Micro and Small Enterprises unit registered in the
State of Kerala with the claim of Rupees One Crore or more shall be considered
at the State Micro and Small Enterprises Facilitation Council at Directorate of
Industries and Commerce, Thiruvananthapuram. And other applications shall be
considered at the Regional Micro and Small Enterprises Facilitation Council. (2) All
applications of the aggrieved Micro and Small Enterprises unit (Applicant)
submitted through MSME SAMADHAAN web portal having registration within the
State of Kerala which qualifies the criteria as mentioned in sub-rule (1) of
rule 6. The Government shall appoint the Director of Industries and
Commerce as the Chairperson of the State Micro and Small Enterprises
Facilitation Council and the General Manager, District Industries Centres,
Thiruvananthapuram, Ernakulam and Kozhikode as the Chairperson of the Regional
Micro and Small Enterprises Facilitation Council. In the absence of Director of
Industries and Commerce an officer who is in charge of Director and in the
absence of General Manager an officer in charge of General Manager shall be
designated to officiate as Chairperson of the State and Regional Council
respectively. (1) The
Council shall consist of not less than three but not more that five members,
including the Chairperson. (2) The
Members shall be appointed as per the provisions of clauses (ii), (iii) and
(iv) of sub-section (1) of section 21 of the Act. (3) 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 in which he was so appointed. (4) Any
member of the Council may resign from the Council by tendering one month's
notice in writing to the Government. (5) 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, appoint another person to fill that vacancy. (1) The
Government may remove any member from office, if she/he: (a) is of
unsound mind; or (b) becomes
bankrupt or is adjudged as undischarged insolvent or suspends payment to his
creditors; or (c) is
convicted of any offence; or (d) abstains
himself from five consecutive meetings of the Council; or (e) acquires
such financial or other interest as is likely, in the opinion of the
Government, to affect prejudicially his functions as a member. (2) If a
member is removed on the above grounds, such vacancy shall be filled up by
Government on the basis of the nomination given by the
Association/Agency/Institution which represent the category/interest in which
that member was so appointed. (1) The
Government may provide remmuneration, honorarium or fees that may be paid to
the members as fixed by the State Council from time to time. (2) The
amount received as processing fee or processing charges for applications filed
under Delayed payments shall be utilized for dispensation of honorarium of
Council members, remuneration for preparing statement of facts on behalf of the
Council, liaisoning with judicial forum and other activities which pave the way
for the smooth functioning of the Council as decided by the State Council based
on norms. (1) An
aggrieved Micro and Small Enterprises unit may move a reference to the Council
having jurisdiction of the area in the format as provided in the schedule of
these rules. The reference must have documents proving the registration, mobile
number and e-mail address of the aggrieved Micro and Small Enterprises unit as
provided in the schedule. (2) Each
reference should be attached with fee or processing charges of (???)1000
(Rupees One thousand only) by a Demand Draft in favour of the Chairperson
concerned in respect of the State and Regional Micro and Small Enterprises
Facilitation Council as may be approved by the Government and with an
undertaking from the aggrieved Micro and Small Enterprises unit as per Annexure
I that it has not moved a reference before the Civil Court on the same dispute
along with all supporting documents as per checklist in Annexure II. (3) The
Council shall examine the reference at preliminary stage to check regarding
competency of Micro and Small Enterprise unit to file the reference. (4) The
reference may be converted to Original Application (OA) immediately following
the verification process (whether all mandatory documents as per checklist are
submitted along with the respective reference) as well as admissibility check
(whether the reference made by the applicant prima facie comes under delayed
payments to Micro and Small Enterprises as per Micro, Small and Medium
Enterprises Development Act, 2006). (5) In case,
if the reference or the particulars entered in it are not found to the
satisfaction of the Council, it may return the reference. (6) The
Council shall either itself conduct conciliation in the matter or seek the
assistance of any institute for conducting the conciliation and if it decides
to do so, it shall refer the parties to the Institute, (a) The State
Micro and Small Enterprises Facilitation Council shall seek the assistance of
KLSA (Kerala State Legal Services Authority) or any Government authorized
Institute in conducting conciliation over references made as per sub-section
(2) of section 18 of Micro, Small and Medium Enterprises Development Act, 2006. (b) The
Regional Micro and Small Enterprises Facilitation Council shall seek the
assistance of any institute providing alternate dispute resolution services
like District Legal Service Authority of the respective district where the
Council is situated with a view to conduct conciliation over references made as
per sub-section (2) of section 18 of MSMED Act, 2006. (7) The
institute, to which the issue is referred to, shall make earnest efforts to
bring about conciliation and it shall submit its report to the Council within
the time limit preferred by the Council. (8) Where the
conciliation is not successful and stands terminated without any settlement
between the parties, the Council shall either itself take up the dispute for
further action, i.e., arbitration or refer it to an institute for the same. (9) If the
matter is referred to the institute, the Institute or Centre shall arbitrate
the issue as per the provisions of the Arbitration and Conciliation Act, 1996
(Central Act 26 of 1996) and refer the award to the Council. (10) The
Council after finalizing the award or receiving the award from the institute
shall consider the case and pass appropriate final orders in the matter. (1) The
Meeting of the Council shall be ordinarily held after giving seven days'
notice. (2) In case
of urgency, the meeting may be convened at such short notice as the Chairperson
may find suitable. (3) All the
notices/communications for the meeting prepared in the pro forma as provided in
Annexure V and VI shall be informed to both the petitioner and the respondent
by way of electronic messaging or e-mail or other electronic means including
publishing in designated website. (4) The
Council shall hold regular meetings to consider pending cases, at least once a
month preferably on second Friday of every month and if it falls on a public
holiday, the subsequent working day can be opted as per the decision of the
Chairperson. (5) The
quorum of meeting shall be at least one third of the total members in the
Council. (1) Any
decision of the Council shall be made by a majority of its members present at
the meeting of the Council and if any dispute arises, the decision of the
Chairperson shall be final. (2) Every
reference made under sub-section (1) of section 18 of the Act to the Council
shall be decided upon within a period of ninety days. (3) The
secretariat of the Council shall upload the proceedings of every meeting of the
Council on the web portal created for the purpose. (4) The
Council shall issue ex parte order for non participation of the respondent for
continuous two times in the sitting of the Council or default from the part of
the respondent in filing counter statement/objection within fifteen days from
the issue of the preliminary notice regarding the reference made under delayed
payment as per Annexure IV from the side of the respondent. (5) The
Council shall dispose the application/case if the applicant or petitioner is
absent in the successive two sittings of the Council. (6) The
Council shall dispose the application/reference filed in MSME SAMADHAAN web
portal if the petitioner fails to submit the hard copies of the entire
documents as per check list (provided as Annexure II) within 30 days from the
date of the preliminary notice (as shown in Annexure III) issued by the Council
in this regard. If no reply is received within the above time limit the
application would be rejected without further notice/intimation. (1) The
Council shall upload the basic information including the annual progress report
of the Council on the web portal created for the purpose. (2) The
Council shall provide information to the Member Secretary of the National Board
for Micro, Small and Medium Enterprises as defined in the Act in the manner and
form required from time to time. (1) All the
proceedings initiated as per earlier rules shall continue unabated except those
prescribed in this rule. (2) If any
difficulty arises during the course of implementation of these rules, the same
shall be clarified by the Government of Kerala. SCHEDULE [See
sub-rule (1) of rule 11] Format
for reference on delayed payment submitted to the Kerala Micro and Small
Enterprises Facilitation Council. To The Chairperson, Kerala Micro and Small Enterprises Facilitation Council, ..................................................................... References: Under Section 18 of
the Micro, Small and Medium Enterprises Development Act, 2006 (Central Act 27
of 2006). I am the authorized representative of M/s.
...........................This firm is a Micro/Small Enterprises Unit as per
the provisions of the Micro, Small and Medium Enterprises Development Act, 2006
(Central Act 27 of 2006). This unit has supplied the goods/rendered services to
M/s. ........................., but it has not been paid for the same as per
provisions of section 15 of the said Act, 2006. I, therefore, aggrieved with
this unit, wish to file a reference before the council. The information
pertaining to the case is as under: (1) Udyog
Aadhaar/Udyam Registration No. (Note:Micro and Small Enterprises Unit can
register Udyog Aadhaar/Udyam Registration on
www.udyogaadhaar.gov.in/www.udyamregistration.gov.in) : (2) Date of
filing Application (DD/MM/YYYY) : (3) Details of
aggrieved Micro Small and Medium Enterprises Unit: (a) Name of
Authorized Representative : (authorization to be attached) (b) Name of
the Unit : (c) Address
(including PIN code) : (d) State
: (e) District
: (f) Mobile
Number : (g) E-mail
: (h) Type of
aggrieved Micro and Small Enterprises Unit : (4) Name of
Respondent (Buyer) : (i) Address
(including PIN code) : (ii) State
: (iii) District
: (iv) Mobile
Number : (v) E-mail
: (vi) Category
of Respondent (Buyer) Public Sector Undertaking) (Central Public Sector (5) Principal
amount payable ((???)) : (6) Interest
claimed as on : (7) Fee paid
if any : (a) Amount
: (b) Methodology
: Undertaking/State (8) Document
endorsed in support of the claim in respect of supply of goods/supply of
services rendered as referred above: (i) ........................................ (ii) ....................................... (iii) ....................................... (iv) ...................................... I hereby declare that information given above is true to the best
of my knowledge. Any information that may be further required, shall be
provided immediately before the concerned authority. I further declare that I
have not filed/preferred any appeal before any court on the same dispute. Signature : Name : ANNEXURE I [See
sub-rule (5) of rule 3] AFFIDAVIT
FORMAT I, .................................................S/o.............................................................
aged..................residing at........................................ am
the Partner/Director/Managing Director/Proprietor/authorised representative of
M/s. ............................. This firm is a Micro/Small Enterprises Unit
as per the provisions of the Micro, Small and Medium Enterprises Development
Act, 2006 (Central Act 27 of 2006) having Udyog Aadhaar/Udyam Registration No.
............ This unit has supplied the goods......../rendered services
............. to M/s. ........................., but it has not been paid for
the same as per provisions of section 15 of the said Act, 2006 and the
principal amount payable is ............ and the same is delayed from
.......... Therefore, aggrieved with this unit, wish to file a reference before
the Council. Document endorsed as per checklist in support of the claim in
respect of supply of goods/supply of services rendered as referred above: (i) ....................... (ii) ...................... (iii) ..................... I hereby declare that information given above is true to the best
of my knowledge. Any information that may be further required, shall be
provided immediately before the concerned authority. I further declare that I
have not filed/preferred any appeal/application before any Court/Facilitation
Council on the same dispute. DEPONENT ANNEXURE II [See
sub-rule (5) of rule 3] CHECK
LIST DOCUMENTS
NEED TO BE SUBMITTED BEFORE THE HON'BLE MICRO AND SMALL ENTERPRISES
FACILITATION COUNCIL AFTER FILING THE APPLICATION FOR DELAYED PAYMENT (1) Copy of
Receipt of Application filed in MSME Samadhaan. (2) Affidavit
in Stamp paper worth (???) 200 in the given pro forma as in Annexure I. (3) Copy of
Udyog adhaar/Udyam registration. (4) Detailed
and honest description of events till date that led to delayed payment
mentioned in the application filed. (5) Fully
furnished table having columns containing details of purchase order No./work
order No., Invoice No., total invoice amount, amount received/remitted,
outstanding amount/amount pending etc. (all details must be furnished with
date). (6) Full
communication address of the applicant/supplier and respondent/buyer (including
e-mail ID and Whatsapp No.). (7) Copy of
agreement, tender, work order/purchase order between the supplier and buyer
showing Terms of Payment. (8) Full
particulars of supplied goods/services along with Invoice/Delivery Challan
copy. (9) Amount
due and the interest duly calculated under Section 16. (10) Audited
Balance Sheet of previous two years. (11) Copy of
Bank Account Statement covering relevant period. (12) Remittance
slip of processing fee regarding the application as stipulated in sub-rule (2)
of rule 11. Note: All aforesaid documents (hard copies) should be self
attested and sealed and they must be produced in three copies at this office
(Original as office copy, duplicate as District Legal Service Authority copy
and triplicate copy as respondents copy which is required to be enclosed in
postal envelope affixed with optimum stamp so as to reach the respondent by
registered post). ANNEXURE III [See
sub-rule (6) of rule 13] PRELIMINARY
NOTICE TO PETITIONER Sir/Madam, Sub: Industries Micro and Small Enterprises Facilitation Council Delayed
payment application Documents submitting Reg. Ref: Your application No. .......filed in Micro, Small and Medium
Enterprises Samadhaan regarding Delayed payment. You are intimated hereby that it is necessary to submit hard
copies (three sets) of the document prescribed in the Checklist (Annexure II)
for the consideration of the above said application. If you have not submitted
any documents so far or submitted insufficient documents to this office, you
should submit all relevant physical documents substantiating your claim via post/directly
by person within 30 days from the date of receiving this mail. Otherwise your
application will be rejected without any further notice/intimation. ANNEXURE IV [See
sub-rule (4) of rule 13] PRELIMINARY
NOTICE TO THE RESPONDENT Sir/Madam Sub: Industries Micro and Small
Enterprises Facilitation Council Delayed payment application Documents
submitting Reg. Ref: Application No. ........ ..
filed in Micro, Small and Medium Enterprises Samadhaan regarding delayed
payment. M/s. ........................... (Name and Address of the opposite
party) is hereby informed that a petition has been filed
on.....................(date of filing petition) by Sri......................
Proprietor/MD/Secretary/Managing Partner of M/s...................(Name and
address of the petitioner) for an amount of (???).................(amount of
claim) before the Council under section 18 of the Micro, Small and Medium
Enterprises Development Act, 2006. A copy of the petition is also submitted
herewith for your ready reference. You are required to file a statement in this
regard explaining the facts within 30 days after serving a copy of the same to
the petitioner. ANNEXURE V [See
sub-rule (3) of rule 12] NOTICE TO
PETITIONER FOR THE MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL SITTING No. DIC/................................ O. A. No. : To ....................................................... ....................................................... ....................................................... Sub: Micro and Small Enterprises
Facilitation Council (MSEFC)Sitting Intimation Reg. The sitting of the Micro and Small Enterprises Facilitation
Council (MSEFC) is proposed to be held on .................... at
................... at ................ The above said original application (O.
A. No. ......................) will be taken up by the Micro and Small
Enterprises Facilitation Council (MSEFC) for hearing/disposal. Hence you are
informed to appear before the council in person or your advocate on the above
said date and time without fail. Chairperson MSEFC Council ANNEXURE VI [See sub-rule (3) of rule
12] NOTICE TO RESPONDENT FOR
THE MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL SITTING No. DIC/............................ O. A............................. NOTICE .....................................................................................................................
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........................................................................................................................................................................................................................................... is hereby informed that a petition has
been filed by Sri
....................................................................................................................................................................
Proprietor/M.D./Managing Partner/Secretary
of.....................................................................................................................
..................................................................................................................... for an amount of ?
............................. before the Micro Small Enterprises Facilitation
Council under section 18 of the Micro, Small and
Medium Enterprises Development Act, 2006. The case is posted on ..........
at........for hearing at..........You may appear in person or represent via
your advocate on the Council sitting.KERALA
MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL RULES, 2023
PREAMBLE