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State of Telangana - Section

Section 6 in Telangana State Micro and Small Enterprises Facilitation Council Rules, 2017

6. Procedure to be followed in the discharge of functions of the Council.

- (i) An aggrieved Micro or Small Enterprise [MSE] unit can move a reference to the Micro and Small Enterprises Facilitation Council having jurisdiction of the area in the format provided as Form-1 of these rules. The reference must have the Udyog Aadhar Memorandum (UAM) number, mobile number and email address of aggrieved MSE unit as provided in Form-1.
(ii)Such references should be attached with fee or processing charges as notified by the Government vide Para 3(iv) above and with an undertaking from aggrieved MSE unit that it has not moved a reference before the civil Court on the same dispute.
(iii)Upon receipt of references from the supplier MSE unit, the Secretariat of the Council I shall enter the data in the web portal created for this purpose.
(iv)After entering the data, acknowledgment of the receipt of reference shall be issued by the Secretariat to the applicant MSE unit through email.
(v)The Council may examine the reference at preliminary stage to check regarding the fee or competency of MSE unit to file the reference.
(vi)In case if the reference or the particulars entered in it are not found to the satisfaction of Council, it may return the reference.
(vii)At least seven days' notice shall ordinarily be given for any meeting. However, in case of urgency a meeting may be called at such shorter notice as the Chairperson may consider sufficient;
(viii)The Council may appoint/or engage the services of one or more experts in terms of Section 26 of the Arbitration and Conciliation Act, 1996.
(ix)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, 1996, for assistance in taking evidence.
(x)The reference/application of the aggrieved micro or small enterprises 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 particulars 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 rights 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.
(xi)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.
(xii)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 proceeding meeting of the Council to examine and if found in order, it place for consideration of the Council at its next immediate meeting.
(xiii)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 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.
(xiv)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 acceptance 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.
(xv)When such conciliation does not lead to settlement of the dispute, the Council shall either itself act as an Arbitrator for final statement 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.
(xvi)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.
(xvii)Any decision of the Council shall be made by a majority of its members present at the meeting of the Council.
(xviii)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.
(xix)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.
(xx)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 subsection (3) of Section 7 of the Act.