The Delhi High Court in its bench consisting of Justice Rekha Palli has sought for response from MSME Facilitation Council directing for status report regarding the undue delay caused by it while dealing with applications concerning delayed payments and the time limit within which the pending applications are to be disposed off.
Facts of the case:
A petition had been filed by a company registered as a micro-industry under the Micro, Small and Medium Enterprises Development Act, 2006, raising a grievance that the petitioner’s applications for recovery of delayed payment preferred before respondent no.1 are not being taken up for consideration despite multiple representations and attempts.
Contentions of the petitioner:
The petitioner had claimed that between February and April 2021, during its visits to the premises of the MSME, it was informed that the MSME Samaadhan–Delayed Payment Monitoring System was malfunctioning, being overburdened with applications and that the respondent was still processing applications for delayed payments filed in 2017-18. It is the petitioner’s case that this is incomplete contravention to the mandate of the Act which provides that “every reference made shall be decided within a period of 90 days from the date of making such reference.
Order of the court:
The Hon’ble bench of the High Court, keeping in view the nature of the petition, directed a status report from the respondents before the next date of hearing setting out their pendency and the current time frame of processing applications.
It further stated that the status report should contain the vintage of the applications, the number of applications which are being disposed of every month and the reasons for the delay in processing the applications.
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