Case Law Analysis
|Gauhati High Court
Section 16 MSME Act | Monthly Compounding at Three Times RBI Rate Mandatory for Delayed Payments : Gauhati HC
Gauhati HC clarifies that interest under Section 16 of the MSME Act must be calculated monthly at three times the RBI rate prevailing at the end of each month, not a fixed rate from the appointed day. The ruling eliminates the need for prior conciliation for repeated claims, strengthening MSMEs' recovery rights against delayed payments.