Supplier under MSMED Act In the matter of M/S Ramky Infrastructure Private Limited v.Micro and Small Enterprises Facilitation Council &Anr, the High Court of Delhi under W.P.(C) 5004/2017 & CM No. 21615/2017, delivered on 04.07.2018, held that
“Even if an entity has not filed a Memorandum as required under Section 8(1) of the MSMED Act, it would still be treated as a supplier under Section 2(n) of the MSMED Act if it falls within the definition of the micro/small enterprise.
The Court had to deal with an issue as to whether it was mandatory for a small/medium enterprise (GCIL, in this case) to file the Memorandum under Section 8(1) of the Act in order to fall within the definition of a supplier under Section 2(n) of the Act.
The Court after referring to the definition of Section 2(n) read with Section 8(1) of the Act concluded on Supplier as below:
1.Once a party has become a part of the proceedings and has appeared on several occasions, it cannot take the stand that it was not heard or the principles of natural justice were not followed.
2.For a supplier to be governed under the MSMED Act, it is not mandatory to file the Memorandum under Section 8(1) of the Act. If it fulfils the conditions under the second limb of the Section 2(n), it would be considered as a supplier under the MSMED Act.
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