Date:June 1, 2022
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