MSMED Act is of prospective nature, has no retroactive effect

The Apex Court has iterated that the MSMED Act of 1993 is of prospective nature and has no retroactive effects. In Odisha State Financial Corporation vs Vigyan Chemical Industeries decided on 5 August 2025, the Supreme Court strongly disapproved of the Odisha State Financial Corporation (‘OSFC’) for its legal mismanagement. A bench of Justices J B Pardiwala and R Mahadevan has put forward that procedural compliance is not just a mere formality; it is rather a substantive safeguard designed to protect the interests of State instrumentalities and the public exchequer.

The liability to make payments under Sections 3 and 4 of the The Interest On Delayed Payments To Small Scale And Ancillary Industrial Undertakings Act, 1993 can only arise after the Act has come into force. Since no prior events and liabilities are attached, the Act only acts prospectively and has no retroactive role. 

The Court referred to the International Airport Authority’s case on the question of when a corporation may be considered an instrumentality or agency of the government. This is not by mere government ownership. These include (1) entire shareholding by the government, (2) substantial financial assistance by the state, (3) state-conferred or protected monopoly, (4) deep and pervasive government control, (5) performance of functions of public importance closely related to governmental duties, and (6) transfer of a government department to the corporation. These are indicative tests and their cumulative effects determine whether a corporation qualifies as “State” under Article 12 of the Constitution. 

Section 29 of the State Financial Corporation Act, 1951 empowers financial corporations to enforce security without court intervention, limiting their liability strictly to funds recovered from the borrower’s assets. These corporations cannot be held personally liable. The judgement has reaffirmed the principle established in the Assam Small Scale Industries case.

Join Our WhatsApp Channel for Opportunity Updates

Get Daily Updates

Join our Telegram Channel for Opportunity Updates

Get Daily Updates

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Article

NUJS Disability Rights Article Writing Competition 2025 – Register Now!

The West Bengal National University of Juridical Sciences (NUJS), Kolkata, is pleased to announce the NUJS Disability Rights Article Writing Competition as part of its broader commitment to inclusive legal education and discourse. This competition is an opportunity for students, researchers, and professionals to critically engage with contemporary issues in disability rights law and policy.

Participants are encouraged to explore themes such as the intersection of caste, gender, and disability; the legal dimensions of AI and accessibility; reasonable accommodation in digital spaces; and the global positioning of India in disability rights advocacy. The competition seeks well‑researched and original submissions hat critically engage with disability rights under the RPwD Act, 2016, and global legal paradigms from undergraduate, postgraduate, and doctoral law students, as well as legal professionals. Both individual and co-authored entries (up to two authors) are permitted.

Beyond being an academic exercise, the initiative aims to foster discourse on social stigma, digital accessibility, intersectionality, and AI’s role in disability laws, while amplifying underrepresented voices in the legal sphere. Participants are sure to gain visibility, publication opportunities, and a platform to shape legal conversations around disability justice.

About WBNUJS

WBNUJS, established in 1999, is one of India’s most prestigious law universities. Renowned for its commitment to academic excellence, inclusivity, and social responsibility, WBNUJS has long championed accessibility in legal education. We have hosted several flagship events, including the NUJS-HSF Moot, the NUJS ADR Mediation Competition, and Para-Invicta — India’s only sports fest dedicated to specially-abled students.

The 1st NUJS National Disability Law Moot Court Competition is a pioneering national-level initiative focusing exclusively on the legal rights and protections of persons with disabilities (PwDs), as enshrined under the Rights of Persons with Disabilities Act, 2016, and other related instruments.

Why Participate?

  • Top 3 entries will be published in reputed law journals
  • Top 10 entries will receive certificates of merit
  • All participants will get participation certificates
  • Top 3 entries will be presented at the NUJS Disability Rights Conclave
  • Cash prizes and a chance to build your publication profile
  • Network with law scholars, disability rights advocates, and policy experts
  • Opportunity to gain recognition in the inclusive justice space

Eligibility

The NUJS Disability Rights Article Writing Competition 2025 is open to:

  • Undergraduate, LL.M., and PhD law students in India
  • Working legal professionals
  • Individual and co-authored (up to 2 authors) entries are accepted

Topics for Submission

Participants may choose from the following topics (or explore sub-themes):

  1. Gender and Disability Law in a Global Context
  2. Corporate Social Responsibility (CSR) and Disability Rights
  3. Prison Rights of Persons Under the PwD Act
  4. ADR and Access to Justice for Specially-Abled Communities
  5. Intersectionality of Caste and Disability in Indian Law
  6. India’s Role in the Global Disability Rights Movement
  7. Federalism and the Design of Disability Rights Policy
  8. Artificial Intelligence, Technology, and Disability Law
  9. Case Comments on significant judgments involving PwD rights

Submission Guidelines

  • Registration Deadline: 15 July 2025
  • Submission Deadline: 22 July 2025
  • Results Announcement: 3 August 2025
  • Submit entries via email to: nationaldisabilitymoot@nujs.edu
  • Follow the formatting guidelines provided in the competition brochure

Participation Fees

  • UG Students: ₹299 (Single) / ₹499 (Double)
  • LL.M. Students: ₹449 (Single) / ₹649 (Double)
  • PhD/Working Professionals: ₹649 (Single) / ₹899 (Double)

Awards

  • Top entry to be published in the Journal of Indian Law & Society (JILS)
  • Next 2 entries will also be published in law journals
  • Top 3 get to present at the NUJS Disability Rights Conclave
  • All submissions receive wide academic visibility and recognition

How to Register

  1. Fill out the registration form: Google Form
  2. Upload proof of payment after NEFT/UPI transfer

Payment Details:
Name: Kinjal Das
Bank: Bandhan Bank
Branch: Ballygunge
Account No: 50220033592779
IFSC: BDBL0001699

Contact Us

Chair: Kinjal Das – +91 75959 65675
Deputy Chairs: Anushka Maji – +91 86174 78308, Saarthak Samadder – +91 94330 48880
Event Heads: Serena Sarkar – +91 99032 20206, Aditya Roy Chowdhury – +91 77381 55002
Email: nationaldisabilitymoot@nujs.edu

Follow updates on:
Instagram: @nujs_ndlmc | Facebook: Nujs Ndlmc | LinkedIn: NUJS NDLMC


Join Our WhatsApp Channel for Opportunity Updates

Get Daily Updates

Join our Telegram Channel for Opportunity Updates

Get Daily Updates

Next Article

Contact Us

For Submitting a Post

contact@lawdrishti.com

For Banner ads & admission campaigns

advertise@lawdrishti.com

Timing

Hours: 9 AM – 9 PM (Mon-Sat)

See the below animation to allow notifications.

Start getting Lawdrishti updates useful for you!

Contact Us

For Submitting a Post

For Banner ads & admission campaigns

Contact us
For Submitting a Post
For Banner ads & admission campaigns
Timing

Hours: 9 AM – 9 PM (Mon-Sat)