In India, the coverage of MSME is vast, encompassing businesses in both the manufacturing and services sectors that meet specific criteria for investment in plant, machinery, or equipment and annual turnover. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides a comprehensive regulatory framework for the promotion, development, and competitiveness of MSMEs in…
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides critical protection to MSMEs in India against delayed payments. It mandates timely payments, prescribes penal interest on defaults, and establishes an institutional mechanism for dispute resolution. Additionally, recent amendments in the Income Tax Act further strengthen compliance by disallowing tax deductions for unpaid MSME…
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(SARFAESI Act 2002) provide for Enforcement of Security Interest for the realization of the dues without the intervention of Courts or Tribunals for recovery of NPAs by banks under various laws. In 2016 NBFC is included under the definition of the financial institution through…
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), is a landmark legislation enacted to empower banks and financial institutions with the ability to recover non-performing assets (NPAs) without the need for court intervention. The Act was later amended by the Enforcement of Security Interest and Recovery of…
The SARFAESI ACT is the acronym of Securitisation And Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002. The Act has been amended by the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act 2004. The SARFAESI Act provides for Enforcement of Security Interest for the realization of the dues without the intervention of Courts or Tribunals which is treated as one…
The National Board for Micro, Small and Medium Enterprises (NBMSME) is a statutory body established under the MSMED Act, 2006, first notified on May 15, 2007. It consists of 47 members including the Chairman (ex-officio Minister in charge of MSME), Vice Chairman, Member Secretary, and other representatives from Central Ministries, State Governments, industry associations, trade…
The registration of a charge under the Companies Act, 2013 ensures legal validity and priority of lenders’ rights over a company’s assets. The process involves board approvals, proper documentation, filing with the Registrar of Companies (ROC), and issuance of a certificate of registration. Step-by-Step Procedure 1. Pass a Board Resolution * Convene a board meeting…
The phrase “Appropriation of Security”** has a specific meaning in banking and law. Let me explain it in a structured way for you: 📘 Meaning Appropriation of security refers to the right of a creditor (e.g., a bank) to apply or utilize the security provided by a debtor towards the repayment of a specific debt…
The Companies Act 2013 mandates the registration of charges created by companies to ensure transparency and protect the interests of creditors. Provisions regarding this are outlined in Sections 77 to 87 of the Act Section 77: Duty to Register Charges Every company must register the particulars of any charge created over its property, assets, or…
In India, a certified copy of a document of title to immoveable property is generally acceptable as legal evidence when the original is lost or unavailable, provided it is issued by the concerned Sub-Registrar’s Office and follows the legal process under the Registration Act, 1908 Legal Basis for Acceptability A certified copy of title documents—including…
