Haryana MSME Rules 2021

Haryana MSME Rules 2021, The parent act i.e. Micro, Small and Medium Enterprises Development Act, 2006,  the power has been granted to the state to frame their rules for the smooth functioning and achieve the purpose of the Act, and the pursuance of the powers the Haryana State have framed their which is called as Haryana MSME Rules 2021. In this article we have tried to cover all rules of Haryana MSME Rules 2021. 

Haryana Government Industries And Commerce Department

Vide Notification The 9th November 2021 No. 2/6/2021.— the Haryana Govermenment Industries And Commerce Department framed their rules:

In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 30 of the Micro, Small and Medium Enterprises Development Act, 2006 (Central Act 27 of 2006), the Governor of Haryana, hereby makes the following rules for the composition of the Haryana Micro and Small Enterprises Facilitation Council, the manner of filling vacancies of its members and the procedure to be followed in the discharge of their functions, namely:-

1. Short title, extent and commencement Haryana MSME Rules 2021

(1) These rules may be called the Haryana Micro and Small Enterprises Facilitation Council Rules, 2021.

(2) They shall extend to the whole of the State of Haryana.

(3) They shall come into force on the date of their publication in the Official Gazette. Short title, extent and commencement.

2. Definitions Haryana MSME Rules 2021

(1) In these rules, unless the context otherwise requires,-

• (a) “Act” means the Micro, Small and Medium Enterprises Development Act, 2006 (Central Act 27 of 2006);
• (b) “Arbitration and Conciliation Act” means the Arbitration and Conciliation Act, 1996 (Central Act 26 of 1996);
• (c) “Association” means the group of Micro and Small industries registered under the Haryana Registration and Regulation of Societies Act, 2012 (Act 1 of 2012) or under section 8 of the Companies Act, 2013 (Central Act 18 of 2013);
• (d) “Council” means the Haryana Micro and Small Enterprises Facilitation Council established by the State Government under section 20 of the Act;
• (e) “digital mode of communication” means the electronic mode of communication including email, short message service (SMS), FAX or other modes of similar nature;
• (f) “Form” means the form appended to these rules;
• (g) “member” means the member of the Council including its Chairperson;
• (h) “section” means the section of the Act;
• (i) “State Government” means the Government of State of Haryana in the administrative department.

(2) The words and expressions used but not defined in these rules shall have the same meaning as assigned to them in the Micro, Small and Medium Enterprises Development Act, 2006 (Central Act 27 of 2006). Definitions.

3. Composition of Council Haryana MSME Rules 2021

(1) The Council shall consist of the following members, namely:-

Chairperson: An officer from the Micro, Small and Medium Enterprises Department, Haryana, not below the rank of Director;

Member: An officer from the office of Financial Advisor, Haryana Bureau of Public Enterprises, not below the rank of Group-A officer;

Member: An officer from the Administration of Justice Department, Haryana, not below the rank of Deputy District Attorney;

Non-official Member: The President or his representative not below the rank of General Secretary of Micro and Small Industries Association in the State of Haryana appointed by the State Government;

Member Secretary: An officer from the Micro, Small and Medium Enterprises Department, Haryana, not below the rank of Joint Director.

(2) Non-official members shall hold the office for a period of one year from the date of assuming his office. The State Government may further extend the period of the non-official members for one more year if it so deems fit. He may resign from his office by giving one month’s notice in writing to the State Government.

(3) The official member shall be entitled to get the travelling/daily allowance from their respective department as per applicable rules. The non-official member shall also be entitled to get remuneration and travelling/daily allowance as specified in his appointment letter.

(4) The State Government may remove the non-official member from his office-

• (a) if he is of unsound mind and stands so declared by a competent court; or
• (b) if he becomes incapable, in the opinion of the State Government, to discharge his functions as a member; or
• (c) if he becomes bankrupt or insolvent or suspends payment to his creditors; or
• (d) if he is convicted of any offence which is punishable under the Indian Penal Code, 1860 (Central Act 45 of 1860); or
• (e) if he abstains himself from three consecutive meetings of the Council without the leave of the Chairperson, and in any case from five consecutive meetings; or
• (f) if he acquires such financial or other interest as is likely, in the opinion of the State Government, to affect prejudicially his functions as a member.

4. Casual Vacancy

When a casual vacancy occurs by reason of death, resignation or otherwise of a non-official member, a report shall be made forthwith by the Chairperson to the State Government which shall take steps to have the vacancy filled by appointment.

5. Meetings of council

1. The headquarters of the Council shall be at Panchkula. The Council shall meet at its headquarters or at such place and at such time, as the Chairperson may decide. The meeting shall be headed by the Chairperson or the Member Secretary.
2. The Council shall ordinarily convene at least one meeting in every month for the transaction of its business.
3. The Chairperson may convene an urgent meeting of the Council for consideration of any matter which, in his opinion, requires immediate and urgent attention by the Council.
4. The quorum of the meeting shall be more than half of the present members.
5. A meeting of the Council may be called by giving notice of not less than seven days. In case of an urgent meeting of the Council, the same shall be called by giving notice of not less than forty-eight hours.
6. Any accidental omission to give notice to or the non-receipt of such notice by any member for any meeting shall not invalidate the proceedings of the meeting.
7. All references/matters considered in the meeting shall be decided by a majority of votes of its present members.

Also Read: Registration Under MSME 

6. Procedure of Council in respect of reference.

1. An aggrieved Micro and Small Enterprise supplier registered within the State of Haryana, may move reference to the Council in Form-I with interest calculation in Form-II alongwith supportive documents and soft copy of the reference. The reference shall be accompanied with fees of rupees three thousand five hundred i.e. one thousand rupees towards application fee and two thousand five hundred rupees towards administrative expenses by way of demand draft/ Cheque/ NEFT in favour of the Chairperson of the Council. An aggrieved Micro and Small Enterprise supplier shall also submit an undertaking in Form-III to the extent that he has not moved a reference before any Civil Court on the same dispute. The aggrieved Micro and Small Enterprise supplier shall also simultaneously send a copy of the reference along with complete set of documents to the buyer or buyers against whom the reference is made.
2. Upon receipt of reference from the Micro and Small Enterprise supplier, the Council shall enter the data in the official web portal created for this purpose.
3. After entering the data, acknowledgement of the receipt of reference shall be issued by the Council to the Micro and Small Enterprise supplier through digital mode of communication.
4. The Council shall examine the reference at preliminary stage to check regarding fee or competency of Micro and Small Enterprise supplier to file the reference. In case the particulars entered in the reference are not found as per provisions of the Act or rules made thereunder, the Council shall give an opportunity to the said supplier with the request to supply the requisite information/documents within such period as specified in the notice. If the supplier fails to supply the above said information/documents within specified period to the Council then the reference shall be returned in original without taking further necessary action.
5. The Council shall, if satisfied with the facts stated in the reference that the Micro and Small Enterprise supplier is entitled to make a reference under the provisions of the Act or rules made thereunder, shall issue a notice to the respondent alongwith a copy of the statement of claim and other documents attached to the reference by registered post or any digital mode of communication, asking him to furnish a response to the said reference within fifteen days of receipt of the said notice alongwith fees of two thousand five hundred rupees towards the administrative expenses by way of demand draft/ Cheque/ NEFT in favour of Chairperson of the Council.
6. The Council shall take action in the reference as per provisions specified in subsection (2) of section 18 of the Act. The notice shall be issued to the parties through speed post or any digital mode of communication.
7. If the reference is sent by the Council to any institution, the said institution shall make efforts to bring about conciliation and shall submit its report to the Council within fifteen days of sending the reference by the Council or within such period as the Council may specify.
8. Where conciliation initiated under sub-rule (7) is not successful and stands terminated without any settlement between the parties, the Council shall take-up the dispute for arbitration as per the provisions specified in sub-section (3) of section 18 of the Act. The notice shall be issued to the parties through speed post or any digital mode of communication.
9. If the matter is referred to the institution, the institution shall arbitrate the issue as per provisions of the Arbitration and Conciliation Act, 1996 (Central Act 26 of 1996) and refer the award to the Council.
10. The Council shall conduct its proceedings through physical appearance or video conferencing as deemed fit.
11. The Council shall consider the arbitral findings/reports and recommendations and pass appropriate final award/ order in the matter.
12. 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 (Central Act 26 of 1996) for taking assistance while conducting the proceedings.

7. Decisions of Councils

1.  Any decision of the Council shall be made by a majority of its members present at the meeting of the Council.
2. The Council shall make an arbitral award in accordance with section 31 of the Arbitration and Conciliation Act, 1996 (Central Act 26 of 1996). The award shall be stamped in accordance with the relevant law in force. The certified copy of the award shall be sent within seven days of the filing of an application by the parties.
3. The Council shall upload the proceedings of every meeting of the Council on the official web portal created for the purpose.
4. No application for setting aside any award or other order made either by the Council itself or by any institution providing alternate dispute resolution services to which a reference is made by the Council, shall be entertained by any court unless the respondent-appellant (not being a supplier) has deposited with it seventy-five percent of the amount in terms of the award, or the other order, as the case may be, in the manner as directed by such court.

8. Seal Of The Council

There shall be a common seal of the Council which shall be affixed on such documents as the Chairperson may, by order, direct.

Also Read: MSME Schemes By Central Government

9. Subordinate of Council

(1) The subordinate staff of the Council shall be provided by the Directorate of Micro, Small and Medium Enterprises, Haryana or the same may be engaged as per the outsourcing policy of the State Government.

(2) Allowances payable to the non-official member and administrative expenses including salaries and allowances etc. payable to the subordinate staff of the Council shall be met out from the consolidated fund of the State provided to the Directorate of Micro, Small and Medium Enterprises, Haryana.

10. Recovery

If a buyer does not file any appeal under section 19 of the Act to set aside any award or other order either made by the Council itself or by any institution or if such appeal filed by the buyer is dismissed, in that case such decree/ award or other order passed by the Council or institution shall be executed by Collector of the District Concerned where the property of the buyer is located and the amount due shall be recovered as an arrear of land revenue.

11. Progress Report

(1) The Council shall upload the basic information related to its work including the annual progress report of the Council on the official web portal created for the purpose.

(2) 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 as required from time to time.

12. Power To Interpret.

During the course of implementation of these rules, if any difficulty arises in the interpretation of any provision of said rules, the power to interpret shall lie with the State Government.

13. Repeal and Savings.

The Haryana Micro and Small Enterprises Facilitation Council Rules, 2007 are hereby repealed: Provided that anything done or any action taken under the rule so repealed shall be deemed to have been done or taken under the corresponding provisions of these rules: Provided further that all proceedings initiated under the repealed rules shall continue unabated.

Also Read: Dispute Resolution Under MSME Act

14. Filing Process and requirements

For the Filing of Reference Application before the Haryana MSME Council, there are specified forms under the Rules, which are From-I, Form-II and Form–III, to see the specified forms Click here.

To download the main Parents Act, i.e.  Micro, Small and Medium Enterprises Development Act, 2006 Click here.

Note: For any further information or any query you may contact us on 9855677966 or via email at info@bhandarilawfirm.com