The question is when a wife attempts to commit suicide, will it amount to mental cruelty meted out to the husband? Further, will it be a ground on which the husband can file a divorce petition, and seek divorce from the wife?
As per Section 13 (1)(ia) of Hindu Marriage Act, 1955, meting out mental cruelty upon a spouse is a ground for divorce.
If after the solemnization of marriage, a husband or wife is treated with cruelty by his or her spouse, this is the ground for divorce.
Section 13 (1)(ia) of the Hindu Marriage Act, 1955 reads as under :
13. Divorce.—(1) Any marriage solemnized, whether before or after the commencement of this Act, may, on a petition presented by either the husband or the wife, be dissolved by a decree of divorce on the ground that the other party—
(ia) has, after the solemnization of the marriage, treated the petitioner with cruelty; or
When a spouse attempts to commit suicide, will it be cruelty? Will it be cruelty to claim a divorce?
Hon’ble Supreme Court in Narendra v. K. Meena, (2016) 9 SCC 455 affirmed the Family court / Trail Court’s decision to grant a divorce to the husband when the wife attempted to commit suicide.
[Plead read the case study below]
The question as to whether a single act of committing suicide would be sufficient ground for divorce, the Hon’ble Supreme court in Narendra v. K. Meena, (2016) 9 SCC 455 answered this question.
In this case, referring to the incident of the wife locking herself in the bathroom and pouring kerosene on herself so as to commit suicide, Hon’ble Supreme Court held that :
“In our opinion, only this one event was sufficient for the Appellant husband to get a decree of divorce on the ground of cruelty.”
Thus, a single act of committing suicide would be sufficient to claim mental cruelty and seek divorce.
The wife picked up a quarrel with the Husband, went to the bathroom, locked the door from inside and poured kerosene on her body and attempted to commit suicide.
On getting smell of kerosene coming from the bathroom, the husband, his elder brother and neighbours broke open the door of the bathroom and prevented the wife from committing suicide.
The afore stated facts were found to be sufficient by the learned Family Court for granting the husband a decree of divorce, after considering the evidence adduced by both the parties.
Being aggrieved by the Family court judgment and decree, the wife filed Miscellaneous First Appeal No.171 of 2002 (FC), which was allowed by the High Court.
High Court set aside the Family court / Trial court’s order and decree of divorce.
Upon perusal of the evidence of the witnesses, the findings arrived at by the trial court to the effect that the Respondent’s wife had locked herself in the bathroom and had poured kerosene on herself so as to commit suicide, are not in dispute.
Fortunately for the Appellant/husband, because of the noise and disturbance, even the neighbours of the Appellant rushed to help and the door of the bathroom was broken open and the Respondent was saved.
Had she been successful in her attempt to commit suicide, then one can foresee the consequences and the plight of the Appellant because in that event the Appellant would have been put to immense difficulties because of the legal provisions.
We feel that there was no fault on the part of the Appellant nor was there any reason for the Respondent wife to make an attempt to commit suicide.
No husband would ever be comfortable with or tolerate such an act by his wife and if the wife succeeds in committing suicide, then one can imagine how a poor husband would get entangled into the clutches of law, which would virtually ruin his sanity, peace of mind, career and probably his entire life.
The mere idea with regard to facing legal consequences would put a husband under tremendous stress. The thought itself is distressing. Such a mental cruelty could not have been taken lightly by the High Court.
In our opinion, only this one event was sufficient for the Appellant husband to get a decree of divorce on the ground of cruelty.
Taking an overall view of the entire evidence and the judgment delivered by the trial Court, Hon’ble Supreme court held that there was no need to take a different view than the one taken by the trial Court.
Hon’ble Supreme Court quashed and set aside the impugned judgment delivered by the High Court, and the decree of divorce passed by the Principal Judge, Family Court, was restored.
When a wife attempts to commit suicide, it will amount to mental cruelty meted out to the husband.
Further, it will be a ground on which the husband can file a divorce petition, and seek divorce from the wife. A single act of committing suicide would be sufficient ground for filing and seeking divorce.
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Whether Limitation Act applies to claims under MSME Act?
Sections 17 and 18 of the Micro, Small and Medium Enterprises Development Act, 2006 provide for the recovery of the amount due for any goods or services rendered by the supplier.
This is applicable to the supplier which comes under the definition of Micro, Small or Medium Enterprises.
The Act does not specifically state whether the law of limitation is applied to the claims filed under this Act.
When it comes to money claims, the law of limitation provides that the money suit must be filed within a period of 3 years from the date on which the right to sue arise.
However, this period is subject to exceptions provided under Limitation Act.
In respect of the claim under the MSME Act, there has been confusion as to whether Limitation Act applies to claims under MSME Act
MSME Office has clarified that its FAQ that the Limitation Act is not applicable as the arbitration proceeding arising out of this is statutory arbitration.
In the recent Judgment of M/s Silpi Industries vs. Kerala State Road Transport Corporation & Anr (CIVIL APPEAL NOS.1570-1578 OF 2021), the Hon’ble Supreme Court held that the Limitation Act, 1963 is applicable in the Arbitration under the MSMED act, 2006.
Hon’ble Supreme Court noted :
Section 22 of the Act mandates buyers to disclose the amount due to the suppliers in their audited financial statement.
Indian Companies Act also mandates buyer filing of Form -1 bi-annually pertaining to the amounts due to the suppliers.
The natural consequence is the admission of the claim by the buyer and thus help from section 18 of the Limitation Act, 1963.
How long can the seller/supplier delay the filing of such a claim before the MSEFC? This was a major loophole in the MSMED Act, 2006 which was resolved now by the Hon’ble Supreme Court of India.
Thus, the Limitation Act applies to MSMED Act, and a claim before MSEFC must be filed within 3 years from the date right to sue arise.
Note: This article is posted by the team of NB Associates. The content(s) of this Article can not be copied or reproduced without the express written consent of NB Associates.
If you have any other queries or questions related to MSME claims you can contact us with the following details :
Call: 9811899279
Email: mail@nbassociates.net.
Why filing of claim before the MSME Facilitation Council is beneficial?
For delayed payment, the Supplier or service provider can approach the MSME facilitation council.
Filing your claim for the recovery of due or outstanding from your customer, purchaser or client has always been smooth, cost-effective and time-saving. The following table compares the differences
| Money suit in District Court | MSME Facilitation Council |
| Court fee is payable for filing money suit (Ranging from 1 % of claim amount to 7%) | No or minimum fee is payable |
| Normally takes time | Quickly decided |
| Execution takes time | Its quick |
| Normally be filed within jurisdiction where defendant resides or works for gain | It is filed where claimant is situated |
| No summary procedure | Summary procedure (so don’t take much time) |
| No interest rate fixed | Interest rate fixed by Law |
| Simple Interest | Compounding interest |
Where can an MSME claim be filed? Territorial Jurisdiction of Facilitation council.
Law points by NB Associates
Section 18(4) of the Micro, Small and Medium Enterprises Development Act, 2006 (the ‘Act’) provides that :
(4) Notwithstanding anything contained in any other law for the time being in force, the Micro and Small Enterprises Facilitation Council or the centre providing alternate dispute resolution services shall have jurisdiction to act as an Arbitrator or Conciliator under this section in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India.
The territorial jurisdiction of the Micro and Small Enterprises Facilitation Council (MSEFC) is limited to the state or union territory where the supplier (MSME) is located.
For example, if an MSME located in Delhi has a dispute with a buyer located in some other state over delayed payment, the MSME can file a claim with the MSEFC in Delhi.
It is important to note that the MSEFC is established under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, and its jurisdiction is limited to resolving disputes related to delayed payments to MSMEs. For other types of disputes or claims, MSMEs may need to approach other forums or authorities depending on the nature of the claim and the applicable laws and regulations.
Thus, the dispute can be filed where the supplier of the goods or services is located.
Further, the conciliation or arbitration is to take place in the same place i.e. where the supplier of the goods or services is located.
How does MSME Facilitation Council work
As per Section 21(2) the procedure to be followed in the discharge of their functions by the members (of the Facilitation council) shall be such as may be prescribed by the State Government.
Thus, State Government can prescribe the procedure.
However, the followings are normally followed procedure :
-> Claimant files MSME claim.
-> Notice issued to other party requiring other party to conciliate and pay within 15 days.
-> If the amount is not paid within 15 days, the MSME council proceeds with admitting the claim and referring the matter to arbitration by appointing an arbitrator or itself arbitrate.
-> Arbitration proceeding takes place
-> Award is passed
-> If money not paid award can be executed as per the provision of Section 36 of the Arbitration and Conciliation Act, 1996
What is the MSME Facilitation council
Section 20 of the Micro, Small and Medium Enterprises Development Act, 2006 (the ‘Act’) for the establishment of Micro and Small Enterprise Facilitation Councils (MSEFC) by the State Government.
Each Facilitation council consists of 3 – 5 members. The composition, and procedure to be followed in the discharge of their functions is / to be prescribed by State Government.
The general function of the Micro and Small Enterprise Facilitation Council is provided in Section 18 of the Act. The facilitation council firstly conducts conciliation.
If conciliation fails without any settlement between the parties, the Council shall either itself take up the dispute for arbitration or refer it to any institution or centre providing alternate dispute resolution services for such arbitration.
For the conciliation as the provisions of section 65-81 of Arbitration & Conciliation Act, 1996 apply, as if the conciliation was initiated under Part III of that Arbitration & Conciliation Act, 1996.
For arbitration provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall then apply to the dispute as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section(1) of section 7 of that Arbitration & Conciliation Act, 1996.
What is MSME
MSME is an abbreviation of Micro, Small and Medium Enterprises. In other words, these are the enterprises which are Micro, Small and Medium in nature.
The enterprises which are Micro, Small and Medium are presently determined by the amount of investment in plant, machinery or equipment and the annual turnover, as per notification No. S.O. 2119(E) dated 26.06.2020 / 26th June, 2020
Micro enterprise literally means an enterprise operating on a very small scale.
Micro enterprise generally refers to a type of small business enterprise that has a very small number of employees, typically less than ten people, and very low levels of revenue or capital investment
Micro enterprise can take many forms, such as home-based businesses, street vendors, small-scale agricultural or manufacturing operations, and small service providers.
Notification No. S.O. 2119(E) dated 26.06.2020 / 26th June, 2020 classify Micro enterprises as enterprises where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees
A small enterprise is a type of business that is larger than a micro enterprise, but small than a medium – sized enterprise. Small enterprise typically have more employees and higher level of revenue or capital investment than micro enterprise, but less than medium – sized enterprises.
In general, small enterprise have fewer than 50 employees. Small enterprise can take many forms, including retail shops, restaurants, consulting firms etc.
Notification No. S.O. 2119(E) dated 26.06.2020 / 26th June, 2020 classify Micro enterprises as enterprises where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees.
A medium – sized enterprise is a type of business that is larger than a small enterprises but smaller than a large enterprise. These enterprise typically have more employees and higher levels of revenue or capital investment than small enterprise.
Generally medium sized enterprise have between 50 to 200 employees. Medium – sized enterprise can take many forms, including manufacturing firms, wholesalers, and professional service firms.
Notification No. S.O. 2119(E) dated 26.06.2020 / 26th June, 2020 classify Micro enterprises as enterprises where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
A composite criterion of investment and turnover applies for classification of an enterprise as micro, small or medium.
If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category.
However, no enterprise is placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) is / are collectively treated as one enterprise and the turnover and investment figures for all of such entities be seen together and only the aggregate values is considered for deciding the category as micro, small or medium enterprise
The calculation of investment in plant and machinery or equipment is linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.
In case of a new enterprise, where no prior ITR is available, the investment is based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.
The expression ―plant and machinery or equipment of the enterprise, have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and include all tangible assets (other than land and building, furniture and fittings).
The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or second hand, is taken into account excluding Goods and Services Tax (GST), on self-disclosure basis, if the enterprise is a new one without any ITR. (
The cost of certain items specified in the Explanation I to sub-section (1) of section 7 of the MSMED Act is excluded from the calculation of the amount of investment in plant and machinery.
Exports of goods or services or both, is excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.
Information as regards turnover and exports turnover for an enterprise to be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.
The turnover related figures of such enterprise which do not have PAN was considered on self-declaration basis for a period up to 31st March, 2021 and thereafter, PAN and GSTIN has been made mandatory.
The form for registration is provided in the Udyam Registration portal.
There is no fee for filing Udyam Registration.
Aadhaar number is required for Udyam Registration.
The Aadhaar number to be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).
In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.
In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis.
No enterprise to file more than one Udyam Registration. Any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.
Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process is liable to such penalty as specified under section 27 of the MSMED Act.
An enterprise having Udyam Registration Number can update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self declaration basis.
Failure to update the relevant information within the period specified in the online Udyam Registration portal will render the enterprise liable for suspension of its status.
Based on the information furnished or gathered from Government’s sources including ITR or GST return, the classification of the enterprise is updated.
In case of graduation (from a lower to a higher category) or reverse-graduation (sliding down to lower category) of an enterprise, a communication is sent to the enterprise about the change in the status.
In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise to maintain its prevailing status till expiry of one year from the close of the year of registration.
In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is registered under the Act or not, the enterprise to continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place.
In order to facilitate the promotion and development and enhancing the competitiveness of micro, small and medium enterprises the through Act No. 27 of 2006 came up with Micro, Small and Medium Enterprises Development Act, 2006 (the ‘Act’)
As per section 8 of the Act Any person who intends to establish a micro, small or medium enterprise is to file a memorandum for such micro, small or medium enterprises with such authority as is prescribed.
In other words, such a person needs to register as MSME.
MSME Act of 2006 was passed for promotion and development and to enhance the competitiveness of micro, small and medium enterprises.
Govt of India has recognised the contributions of MSME in India’s economic sector. Indian Government’s recognition has given thrust to the development and promotion of MSMEs.
From time to time Indian Govt. or State Govt. has come up with several benefits.
Read here: Benefits of MSME registration
Section 15, 16, 17, 18, and 19 of the Act relates to liability of the buyer to make payment, provisions related to the adjudication of dispute between buyer and supplier.
How does arbitration proceeds?
Arbitration is an agreement based dispute resolution mechanism. So proceeds for arbitration followings are the pre-requisites:
1. Existence of an arbitration agreement within the scheme of section 7 of Arbitration and Conciliation Act, 1996; and
2. Existence of a dispute.
As per the provisions Arbitration and Conciliation Act, 1996, normally arbitration proceeds as per the followings :
1. Invocation of arbitration agreement & arbitrator appointment: section 21, 11
2. Filing of statement of claim
3. Filing of statement of defence or counterclaim
4. Evidence
5. Payment of stamp duty & Passing of an award
6. Execution of award
What power an arbitrator has in an arbitration proceeding ?
Arbitration & Conciliation Act, 1996 is an special Act. Arbitrator derives its power from the same.
The Act has envisaged almost all the situation, and provided provisions where Arbitrator enjoys the same power like a normal court.
Arbitrator’s power includes the followings :
To rule on its own jurisdiction : section 16
To pass orders on interim measures : section 17
Determination of rule of procedure : section 19, 24
To appoint experts : section 26
To take court assistance : section 27
To use mediation, conciliation or other procedure to encourage settlement : section 30
Correction and interpretation of award; passing of additional award : section 33
How can parties go to arbitration ?
For adjudication of dispute through arbitration, as per section 7 of the Arbitration & Conciliation Act, 1996 an arbitration agreement must exists between the parties.
As per section 7 of the Arbitration & Conciliation Act, 1996
1. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
2. An arbitration agreement shall be in writing.
3. An arbitration agreement is in writing if it is contained in—
(a) a document signed by the parties;
(b) an exchange of letters, telex, telegrams or other means of telecommunication including
communication through electronic means which provide a record of the agreement; or
(c) an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.
4. The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract.
Thus, there has to be an arbitration agreement as per the scheme of section 7 for a parties to go for arbitration.
Sometimes court may refer disputes to arbitration. In case commercial transaction where supplier or service provider is Micro, Small or Medium enterprises, the matter is referred to arbitration.
This page is intended for informative purposes only and does not constitute solicitation of client or legal advice.
For advice specific to your situation existing clients may please consult our team.
