M/s. Capital Transformers Pvt. Ltd. vs The State of Rajasthan and Others

Mohammad Rafiq, J.—Petitioner, which claims to be a small medium enterprises, has approached this court by way of this writ petition aggrieved by inaction of the respondents in not making payment of interest to it at the rate of 33% from the date of delivery of goods till its realization. Petitioner supplied the goods to Jaipur Vidyut Vitran Nigam Limited but its payment was delayed enormously. Petitioner also could have raised its grievance before the Micro and Small Felicitation Council, which is required to be established in the State of Rajasthan as per Section 20 of the Micro, Small and Medium Enterprises Development Act, 2006 (for short, ''the Act of 2006'') but so far the State Government has not set up such Council.

Having regard to the facts of the case, petitioner is required to approach the Principal Secretary, Industries Department, Government of Rajasthan, Jaipur, who shall take steps as per the provisions of Section 20 of the Act of 2006, which requires setting up of such Council in each State. Section 20 of the Act of 2006 requires the State Government to establish one or more Micro and Small Felicitation Council at such places exercising such jurisdiction as may be specified in the Notification. The Small Industries Department shall on representation of the petitioner, take a final decision as to establishment of the Council within a period of two months from the date such representation is made and the petitioner may approach such Council for redressal of the grievance.

For delayed payment of interest, the petitioner may approach the Jaipur Vidyut Vitran Nigam Limited, by filing separate representation, who may also decide the question of payment of interest on the delayed payment of goods supplied to them by the petitioner within two months from the date such representation is made. Writ petition is accordingly disposed of. This also disposes of stay application.