S. KUMAR Vs. THE MANAGING DIRECTOR

JUDGEMENT

(1.) The petitioner is before this Court seeking a direction to the 1st respondent-Karnataka Leather Industries Development Corporation limited (LIDKAR) for payment of certain amounts, which according to the petitioner is interest on delayed payment, due from the 1st respondent.

(2.) The petitioner is a supplier of leather goods. The petitioner claims that the 1st respondent purchased leather goods from the petitioner which is a small scale industry. The petitioner submits that the transaction between the LIDKAR and suppliers who are Small Scale Industry (SSI) units are governed under 'Micro, Small and Medium Enterprises Development' Act, 2006 ('Act, 2006' for short).

(3.) Learned counsel for the petitioner submits that as per the contract, LIDKAR purchases the products from SSI units on credit basis and makes payments within 90 days from the date of supply of finished goods. It is submitted that LIDKAR has defaulted in paying the balance 25% of the amount due and has been making delayed payment over and beyond the period of 90 days. In this regard, the petitioner seems to have made several representations to the 1st respondent calling upon the 1st respondent to pay the balance due and interest on delayed payments. Since, the 1st respondent failed to pay the balance and accrued interest on delayed payment, the petitioner approached the Karnataka Micro and Small Enterprises Facilitation Council at Bengaluru. The Council registered the case of the petitioner as Case No.13/2008 under 'Act, 2006'.