CHAPTER 5 of the MSMED Act, 2006 deals with Delayed Payments to Micro & Small Enterprises. The law promulgates the obligations of the Buyer towards the MSME supplier with regard to the liability of the payments due, date on which the due is to be cleared and the penal rate to be charged in case of delay of making the payment. The Chapter further provides for forum to be approached and the method of raising the claim before the designated forum against the Buyer.
The approach of DPC is to partner with the MSME for the realization of their dues not from the ringside but being at the forefront of the action plan.
Our Consulting package with the MSMEs is through 3 models;
- Fixed Fee
- Percentage of Claims
- Pro-Bono
First conference with the client being free of charge
Areas of expertise
CLAIM FORMULATION
Our team of qualified accounting professionals and paneled CAs draw up the Claim Application for the Principal amount due along with the interest for the delay, based on our in house devised calculation spreadsheets and formats for our clients which are to be filed before the MSME Facilitation Councils in the formats prescribed by the respective Councils.
CONTESTING THE CLAIM
The Claim once filed before the respective Facilitation Council is pursued and contested proactively through an integrated team comprising of the Client, our executive, and our panelled advocates, if and when the need arises. These will include attending the hearings before the Council, preparing the arguments, petitions and the replies for the matter till the pronouncement of the Award by the Council.
AWARD COLLECTION
The Award, once pronounced by the MSME Council, is subjected to challenge before the Courts as per the provisions of the Arbitration Act, 1996. Our clients are assisted through the process before the various Courts and all other judicial forums for the final realization of the Award.
Our key strategy adopted at this stage harps on quick realization of the award, at the stage of first challenge of award per se, whether through invoking pre-deposit stipulations; IBC, 2006 provisions; OR through Execution process under CPC, 1908.
CLAIM SETTLEMENT
Our team of experienced executives undertakes reconciliation and settlement negotiations on behalf of our clients with the defaulting Buyers for a mutual, consented and confidential settlements.
AWARD ASSIGNMENT
Award Assignment in literal terms means ‘sale’ of the Award. While it is a relatively nascent concept in India, we are in the process of collaboration and tie ups with indigenous and international funds for outright purchase of Awards from the MSME Decree Holder, wherever feasible, and provide an early exit to our MSME Clients.