No. F.1-2( '17)/DI/SSI/MSEFC/2007 11.,5C;'1
Government of Trlpura
Department of Industries & Commerce
Khejurbaqan - 799006
Dated~~ - 07-2017
NOTIFICATION
In exercise of the powers conferred under Section 30 of the 1 ro, Small and f'v1ediumEnterprises
Development Act, 2006 (Central Act No. 27 of 2006), the Government of Tripura hereby makes the
following rules, namely:-
1. Short title and commencement:
1) These rules may be called the Jripura Micro and Small Enterprises Facilitation Council Rules,
1 -
~
2) They shall come into force from the date of publication in he Official Gazette of the State of
Tripura.
3) They shall extend to the whole of Tripura.
2. Definitions: In these rules, unless the context otherwise requires -
i) a) "Act" means the Micro, Small and Medium Enterprises Development Act, 2006 (27 of
2006).
b) "Arbitration and Conciliation Act" means the Arbitration and Conciliation Act, 1996 (26 of
1996);
c) "Council" means the Tripura Micro and Small Enterprises Facilitation Council, established
by the State of Tripura under section 20 of the Act;
d) "Chairperson" means the Chairperson of the Council appointed under clause (i) of sub-
section 21 of the Act;
e) "Government" means the Government of Tripura.
f) "Institute" means any institution or centre providing alternate dispute resolution services
referred to in sub-section (2) and (3) of section 18 of the Act;
g) "Member" means a member of the Council;
h) "Section" means a section of the Act.
i) "Representative of Association" means a person authorised by the President of any
Industry Association located in the state and recognised by the State Government.
ii) The words and expressions used and not defined, but defined in the Act shall have the
meanings assigned to them in the Act.
3. Manner of appointment of Members of Facilitation Council:
a) The Government shall appoint the representatives, specified in clause (ii), (iii) and (iv) of
sub-section (1) of section 21 of the Act, as member of the Council.
b) When a member of the council dies or resign or is deemed to have resigned or removed from
office or becomes incapable of acting as a member, the Government may by notification in
the offlclel gazette appoint a person to fill that vacancy.
c) A member, other than the Chairperson, shall hold office for a period not exceedinc two years
from the date of his appointment.
d) A member appointed under clauses (ii), (iii) and (iv) of sub section (1) of section 21 shall
cease to be a member of the council if he ceases to represent the cateqory or interest frm"
which he was so appointed.
No.F.1-2(47)/DI/SSI/MSEFC/2007/11,561
Government of Tripura
Department of Industries & Commerce
Khejurbagan - 799006
Dated Qé - 07 '2017
NOTIFICATION
In exercise of the powers conferred under Section 30 of the Micro, Small and Medium Enterprises
Development Act, 2006 (Central Act No. 27 of 2006), the Government of Tripura hereby makes the
following rules, namely:-
1. Short title and commencement:
1) These rules may be called the Tripura Micro and Small Enterprises Facilitation Council Rules,
2016. 2
2) They shall come into force from the date of publication in the Official Gazette of the State of
Tripura.
3) They shall extend to the whole of Tripura. ‘
2. Definitions: In these rules, unless the context otherwise requires — 9
i) a) “Act” means the Micro, Small and Medium Enterprises Development Act, 2006 (27 of
2006).
b) “Arbitration and Conciliation Act” means the Arbitration and Conciliation Act, 1996 (26 of
1996x
c) “Council” means the Tripura Micro and Small Enterprises Facilitation Council, established
by the State of Tripura under section 20 of the Act;
d) “Chairperson” means the Chairperson of the Council appointed under clause (i) of sub-
section 21 of the Act;
e) “Government” means the Government of Tripura.
f) “Institute” means any institution or centre providing alternate dispute resolution services
referred to in sub-section (2) and (3) of section 18 of the Act;
g) “Member” means a member of the Council;
h) “Section” means a section of the Act.
i) “Representative of Association” means a person authorised by the President of any
Industry Association located in the state and recognised by the State Government.
ii) The words and expressions used and not defined, but defined in the Act shall have the
meanings assigned to them in the Act.
3. Manner of appointment of Members of Facilitation Council:
a) The Government shall appoint the representatives, specified in clause (ii), (iii) and (iv) of
sub-section (1) of section 21 of the Act, as member of the Council.
b) When a member of the council dies or resign or is deemed to have resigned or removed from
office or becomes incapable of acting as a member, the Government may by notification in
the official gazette appoint a person to fill that vacancy.
c) A member, other than the Chairperson, shall hold office for a period not exceeding two years
from the date of his appointment.
(3) A member appointed under clauses (ii), (iii) and (iv) of sub section (1) of section 21 shall
cease to be a member of the council if he ceases to represent the category or interest from
‘ffiff‘f 7"" " ‘ '
which he was so appointed.
0A-
e) Any member of the Council may resign from the Council by tendering one months notice in
writing to the Government. TIle power to accepl the resignation of a member shall vest in
the Government.
f) The Government may remove any member from office:
i) if he is of unsound mind and stands so declared by a competent court; or
ii) if he becomes bankrupt or insolvent or suspends payment to his creditors, or
iii) if he is convicted of any offence which is punishable under he Indian Penal Code (Act
XLV of 1860); or
iv) if he absents himself from three consecutive meetings of the council without the leave
of the Chairperson, and in any case from five consecutive meetings; or
v) acquires such financial or other interest as is likely, in the opinion of the Government, to
affect prejudicially his functions as a member.
4. Honorarium to the Members of the Council
The remuneration, honorarium or fees and any allowances that may be paid to the members
shall be at rates as fixed by the Government, time to time, by Notification.
5. Procedure to be followed in the discharge of functions of the Council:
i) The Council shall meet at least once in every three months, at such time and place as
may be decided by the Chairperson by Notice.
ii) The quorum for any meeting of the Council shall be two in case if the number of the
members is three or four, and it shall be three if the number of the members is five.
iii) At lease 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.
iv) 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.
v) The Council, or a party to the dispute with an approval of the Council, may apply to the
court under section 27 of the Arbitration and Conciliation Act, 1996, for assistance in
taking evidence.
vi) The reference/ application of the aggrieved micro or small enterprise 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 right 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 of buyers aqains;
whom the reference is directed.
•
1141:
‘3) Any member of the Council may resign from the Council by tendering one months notice in
writing to the Government. The power to accept the resignation of a member shall vest in
the Government.
f) The Government may remove any member from office:
i) if he is of unsound mind and stands so declared by a competent court; or
ii) if he becomes bankrupt or insolvent or suspends payment to his creditors, or
iii) if he is convicted of any offence which is punishable under the Indian Penal Code (Act
XLV of 1860); or
iv) if he absents himself from three consecutive meetings of the council without the leave
of the Chairperson, and in any case from five consecutive meetings; or
v) acquires such financial or other interest as is likely, in the opinion of the Government, to
affect prejudicially his functions as a member.
4. Honorarium to the Members of the Council
The remuneration, honorarium or fees and any allowances that may be paid to the members
shall be at rates as fixed by the Government, time to time, by Notification.
5. Procedure to be followed in the discharge of functions of the Council:
i) The Council shall meet at least once in every three months, at such time and place as
may be decided by the Chairperson by Notice.
ii) The quorum for any meeting of the Council shall be two in case if the number of the
members is three or four, and it shall be three if the number of the members is five.
iii) At lease 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.
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.
The Council, or a party to the dispute with an approval of the Council, may apply to the
court under section 27 of the Arbitration and Conciliation Act, 1996, for assistance in
taking evidence.
vi) The reference/ application of the aggrieved micro or small enterprise 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
’fl:
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 right 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 of buyers against
whom the reference is directed.
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vii] All the reference/ application of the aggrieved micro or sma I enterprise supplier
submitted on or before 31st January, 2017 under consideration of the Department of
Industries & Commerce, Government of Tripura shall be automatically transferred to the
Council.
viii) The reference/ application shall be acknowledged forthwith if it is delivered as 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.
ix) 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 is examined and, if found
in order, is placed for consideration of the Council at its next immediate meeting.
x) 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 a 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.
xi) 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 appearance of both parties, the Council or the institute shall first
make efforts to bring about conciliation between the buyer and 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.
xii) When such collaboration does not lead to settlement of the dispute, the Council shall
either shall act as an Arbitrator for final settlement 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 Councilor the institute during the
arbitration proceedings. The institute shall submit its report to the Council within such
time as the Council may stipulate.
xiii] Any decision of the Council shall be made by majority of its members present at the
meeting of the Council.
xiv) The Council shall make a arbitral award in accordance with section 31 of the Arbitration
and Conciliation Act 1996 and within the second 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.
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vii) All the reference/ application of the aggrieved micro or small enterprise supplier
submitted on or before 315‘ January, 2017 under consideration of the Department of
Industries & Commerce, Government of Tripura shall be automatically transferred to the
Council.
rum; :1
viii) The reference/ application shall be acknowledged forthwith if it is delivered as the office
of the Council. Where the reference/ application is received by registered post, its receipt b
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.
ix) 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 is examined and, if found
in order, is placed for consideration of the Council at its next immediate meeting.
x) 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 a 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.
xi) 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 appearance of both parties, the Council or the institute shall first
make efforts to bring about conciliation between the buyer and 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. 1
xii) When such collaboration does not lead to settlement of the dispute, the Council shali
either shall act as an Arbitrator for final settlement 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.
xiii) Any decision of the Council shall be made by majority of its members present at the
meeting of the Council.
xiv) The Council shail make a arbitral award in accordance with section 31 of the Arbitration
and Conciliation Act 1996 and within the second specified in sub-section (5) of section 18
of the Act. The award shall be stamped in accordance with the relevant law in force.
:7
Copies of the award shall be made available within seven days of filing of an application. 7
.. . ~-\~qb
>"'V) The provisions of section 15 to 23 of the Act shall have effect notwithstanding anything
inconsistent therewith contained in any other law for the time being in force.
xvi) The Chairperson or any other officer authorized by the Chairperson shall maintain all
records, discharge all other functions including forwarding 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 sub-section (3) of the section 7 of
the Act.
6. Progress Report:
i) The Council shall upload the basic information including the annual progress report
of the Council on the web portal created for the purpose.
ii) The Council shall provide information to the Member Secretary of the National Board
for Micro, Small and Medium Enterprises as defined in the Act in the manner and
form required from time to time.
7. Power to amend and relax any or all Provisions of the Act.
Notwithstanding anything contained in any of the provisions of the rules, the State Government
may at any time:
i) Make any relaxation in each case, not contrary to the provision of the Act, as the
State Government may consider necessary and appropriate for the purpose of
effective implementation;
ii) May issue instructions and guidelines, not repugnant to the provisions of the Act, to
facilitate implementation, remove anomalies and to clarify the interpretations of the
provisions of the rules,
8. Clarification and Interpretation
In case of any doubt or dispute regarding the provisions of the rules, only the State Government
shall be competent to clarify or interpret these and such clarification or implementation shall be final
and binding on all concerned.
By the Order of the Governor of Tripura
~'U '7)'r
(M. Nagaraju)
Principal Secretary
Government of Tripura
• •
Lie/61$,
The provisions of section 15 to 23 of the Act shall have effect notwithstanding anything
inconsistent therewith contained in any other law for the time being in force.
XV)
xvi) The Chairperson or any other officer authorized by the Chairperson shall maintain all
records, discharge all other functions including forwarding 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 sub—section (3) of the section 7 of
the Act.
6. Progress Report:
i) The Council shall upload the basic information including the annual progress report
of the Council on the web portal created for the purpose.
ii) The Council shall provide information to the Member Secretary of the National Board
for Micro, Small and Medium Enterprises as defined in the Act in the manner and
form required from time to time.
7. Power to amend and relax any or all Provisions of the Act.
Notwithstanding anything contained in any of the provisions of the rules, the State Government
may at any time:
i) Make any relaxation in each case, not contrary to the provision of the Act, as the
State Government may consider necessary and appropriate for the purpose of
effective implementation;
ii) May issue instructions and guidelines, not repugnant to the provisions of the Act, to
facilitate implementation, remove anomalies and to clarify the interpretations of the
provisions of the rules,
8. Clarification and Interpretation
In case of any doubt or dispute regarding the provisions of the rules, only the State Government
shall be competent to clarify or interpret these and such clarification or implementation shall be final
and binding on all concerned.
By the Order of the Governor of Tripura
W94- lalia—
(M. Nagaraju)
Principal Secretary
Government of Tripura
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