Basic ideas for filing cases before the WBMSEFC

MSME stands for Micro, Small, and Medium Enterprises. This concept categorizes businesses based on their size and scale of operations.   

In West Bengal, as per the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006, the criteria for defining micro, small, and medium enterprises (MSMEs) are based on investment in plant and machinery for manufacturing enterprises and on investment in equipment for service enterprises.  

• Micro Enterprises:

  • Manufacturing Sector: Investment in plant and machinery does not exceed Rs. 25 lakhs.

  • Service Sector: Investment in equipment does not exceed Rs. 10 lakhs.

• Small Enterprises:

  • Manufacturing Sector: Investment in plant and machinery is more than Rs. 25 lakhs but does not exceed Rs. 5 crores.

  • Service Sector: Investment in equipment is more than Rs. 10 lakhs but does not exceed Rs. 2 crores.

• Medium Enterprises:

  • Manufacturing Sector: Investment in plant and machinery is more than Rs. 5 crores but does not exceed Rs. 10 crores.

  • Service Sector: Investment in equipment is more than Rs. 2 crores but does not exceed Rs. 5 crores.

Landmark judgments and rulings related to MSMEs (Micro, Small, and Medium Enterprises). 

• CIT v. V. M. Salgaocar & Bros. Pvt. Ltd. (2000): In this landmark judgements the Indian Supreme Court decision clarified the principles for determining whether a business qualifies as an “industrial undertaking” for income tax purposes, impacting MSMEs eligible for tax benefits.

• Micro and Small Enterprises Facilitation Council, U.P. v. Raghuraj Singh (2010): This case dealt with the enforcement of payments to MSMEs under the Micro, Small and Medium Enterprises Development Act, 2006, highlighting legal protections for MSMEs against delayed payments from larger enterprises.

  
  

The MSMED Act aims to foster a conducive environment for the growth and development of MSMEs, which play a crucial role in generating employment, promoting equitable economic development, and contributing to industrialization in India. The Act has been instrumental in shaping policies and programs that cater to the specific needs and challenges faced by MSMEs in the country.