Micro and Small Enterprises Facilitation Council and Reference to the Council in case of Disputes as per MSME Act 2006

The Micro and Small Enterprises Facilitation Council (MSEFC) is a body established by the State Government under the MSME Act 2006. The MSEFC is responsible for promoting and facilitating the growth of micro and small enterprises (MSEs) in the State.

The MSEFC has the following functions:

  • To provide information and advice to MSEs on various matters, such as marketing, finance, and technology.
  • To facilitate the resolution of disputes between MSEs and buyers.
  • To promote the development of clusters of MSEs.
  • To undertake research and studies on the problems faced by MSEs.

Reference to the Council in case of Disputes

Any party to a dispute relating to delayed payments to an MSE may make a reference to the MSEFC for adjudication. The MSEFC shall decide the matter within 90 days of the date of reference.

The following are the requirements for making a reference to the MSEFC:

  • The dispute must be relating to delayed payments to an MSE.
  • The reference must be made in writing.
  • The reference must be accompanied by a copy of the invoice or other documentary evidence of the delayed payment.

The MSEFC may decide the matter by way of:

  • Arbitration
  • Conciliation
  • Mediation

The decision of the MSEFC is binding on the parties to the dispute.

MCQs on Micro and Small Enterprises Facilitation Council (MSEFC)

  1. Which of the following is not a function of the MSEFC?
    • To provide information and advice to MSEs on various matters
    • To facilitate the resolution of disputes between MSEs and buyers
    • To promote the development of clusters of MSEs
    • To undertake research and studies on the problems faced by large enterprises
    • The correct answer is To undertake research and studies on the problems faced by large enterprises. The MSEFC is only responsible for undertaking research and studies on the problems faced by MSEs.
  2. Which of the following is not a requirement for making a reference to the MSEFC?
    • The dispute must be relating to delayed payments to an MSE
    • The reference must be made in writing
    • The reference must be accompanied by a copy of the invoice or other documentary evidence of the delayed payment
    • The reference must be made within 30 days of the date of the delayed payment
    • The correct answer is The reference must be made within 30 days of the date of the delayed payment. There is no time limit for making a reference to the MSEFC.
  3. The MSEFC may decide the matter by way of __________.
    • Arbitration
    • Conciliation
    • Mediation
    • All of the above
    • The correct answer is All of the above. The MSEFC may decide the matter by way of arbitration, conciliation, or mediation.