Liability of buyer to make payment
Section 15 of the Micro, Small and Medium Enterprises Development Act, 2006 deals with liability of buyer to make payment. Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day: Provided that in no case the period ag The Act came into force on 02 Oct 2006.
Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:
Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.
Section 15, The Micro, Small and Medium Enterprises Development Act, 2006 (Act 27 of 2006).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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M.P. Poorv Kshetra Vidyut Vitaran Co. Ltd. v. Hi-Tek Powercon Pvt. Ltd.
Court's Decision & Legal Precedent
Section 15’s payment liability is the principal foundation of the MSEFC award; when computing the s.19 challenge deposit, the court treats the s.15 principal together with statutory interest as the award ‘amount’.
On this section: Applies s.15’s delayed-payment liability as the award principal that, with s.16 interest, drives the s.19 75% deposit base.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 15
What have the courts held on Section 15 of the Micro, Small and Medium Enterprises Development Act?
M.P. Poorv Kshetra Vidyut Vitaran Co. Ltd. v. Hi-Tek Powercon Pvt. Ltd. (05 Aug 2025) is the leading judgment on this section among those set out below: Applies s.15’s delayed-payment liability as the award principal that, with s.16 interest, drives the s.19 75% deposit base.
How do I find court cases under Section 15 of the Micro, Small and Medium Enterprises Development Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Micro, Small and Medium Enterprises Development Act 15, section 15 Micro, Small and Medium Enterprises Development Act, section 15 of the Micro, Small and Medium Enterprises Development Act. People searching for it also type section 15 of micro small and medium enterprises and 15 of the micro small and medium enterprises development act 2006 27 of 2006. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with M.P. Poorv Kshetra Vidyut Vitaran Co. Ltd. v. Hi-Tek Powercon Pvt. Ltd. (05 Aug 2025).
What should I read with Section 15 of the Micro, Small and Medium Enterprises Development Act, and has it changed?
2 other provisions in this corpus refer back to it. One instrument names it without being made under it, most recently No. 27 of 2006 (2006).
When did Section 15 of the Micro, Small and Medium Enterprises Development Act come into force?
Section 15 of the Micro, Small and Medium Enterprises Development Act, cited as Micro, Small and Medium Enterprises Development Act 15, came into force on 02 Oct 2006, having been enacted on 16 Jun 2006. It is in force as at the date shown on this page.
Other sections of this Act
- 3. Establishment of Board885 words
- 7. Classification of enterprises763 words
- 2. Definitions619 words
- 8. Memorandum of micro, small and medium enterprises349 words
- 29. Power to make rules313 words
- 18. Reference to Micro and small Enterprises Facilitation Council290 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.