Micro, Small and Medium Enterprises Development Act, 2006 · Chapter V: Delayed Payments to Micro and Small Enterprises
Section 16: Date from which and rate at which interest is payable
Where any buyer fails to make payment of the amount to the supplier, as required under section 15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the date agreed upon, at three times of the bank rate notified by the Reserve Bank.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 14 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 16
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MMTC Limited v. Anglo American Metallurgical Coal Pvt. Limited
Issue arose whether the High Court was justified in not entertaining the objections filed by the appellant u/s.47 CPC and in dismissing the same; and whether at least prima facie the case of breach of fiduciary duty has…
- M/S Suneja Towers Private Limited & Anr. v. Anita