One of the leading groups in the small scale sector, Pragya Equipments Pvt Ltd, had filed a suit against the Man Industries of Pit

Decision Awarded against Man Industries (I) Ltd. under the MSMED Act 2006

21th August 2010. One of the leading groups in the small scale sector, Pragya Equipments Pvt Ltd, had filed a suit against the Man Industries of Pithampur under the MSMED Act 2006 in the MSME Facilitation Council. The suit filed against had specified the Man Industries to pay the company with the outstanding amount of Rs. 57.50 lacs along with the interest thereon Rs. 88.30 lacs (Till 29.05.2010) but despite the order from the council, the company has not paid-off the outstanding amount of Rs. 1 crore 46 lacs.
It is worth noting that the Pragya Equipments Pvt Ltd, in 2004-05 had supplied Man Industries with machinery worth Rs. 1.25 crores for its pipe plant, of which Rs. 57.5 lacs still stands unpaid by the Man Industries (I) Ltd. Even after repeated reminders by the Pragya Equipments, the company has not taken any positive action on the matter.
In 2007, Pragya Equipments filed their papers for issue of notification against Man Industries to the MSME Facilitation Council on the issue. MSME Facilitation Council setup by the small-scale industrial Ministry of the Central Government to safeguard the rights of the small industries, declared their decision in favor of the Pragya Equipments, on 2nd July 2010, after careful and comprehensive scrutiny into the matter and completing the legal formalities. Owing to the decision, the Council has ordered to Man Industries to pay Pragya Equipments within 30 days, an amount of Rs. 1,45,79,157 that includes the outstanding principle amount along with the interest on outstanding amount to the date. But overlooking the order, Man Industries has still not made with the payment. The amount stands at Rs. 1.52 crores to the day including further interest from 29.05.2010 to till date.
Mr. Lakhmi Chand Tolani, CMD, Pragya Equipments Pvt Ltd said, “Even after the decision of paying us with the outstanding amount along with the interest, the company has not paid it to us, and we have once again approached the Council requesting for taking further action. Man Industries, like the other small-scale industries had proposed us to settle the account with half the amount. Many small industries of the state have to struggle for settling their accounts with various corporations, companies and societies. We with the help of this press conference would like to tell our comrades of small industries that the Indian Government has setup this MSME Facilitation Council that safeguards our interests and that its operations in the state are being carried out pervasively and actively. There is no time constraint to file in our complaints and that outstanding amounts of howsoever old cases of any duration or time frame can be filed”.