KCCI urges Finance Ministry to treat dues payable by Limited Liability Companies to MSMEs as that of workmen’s dues

Posted under: MSME
Date: 2023-10-09
KCCI urges Finance Ministry to treat dues payable by Limited Liability Companies to MSMEs as that of workmen’s dues

The Kanara Chamber of Commerce and Industry (KCCI) has urged the Union Finance Ministry to treat claims by medium, small, and micro enterprises (MSME) against limited liability companies on a par with workmen’s dues when the National Company Law Tribunal recommends LLCs’ resolution. In a letter to Union Finance Minister Nirmala Sitharaman on October 7, Chamber President Ananthesh V. Prabhu said there would be little hope for MSMEs to realize dues after doing business with LLCs that end up before NCLT. They lack human resources and infrastructure to conduct customer-credit analysis and would be hit hard when an LLC goes for resolution by the Tribunal. The consensus was that MSMEs claims should be treated similarly to the workmen’s dues by being included in Clause (b) of Subsection 1 of Section 53. He noted that MSMEs caught in the web of companies that have gone to NCLT might not survive if they were not given preference.

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