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 (โ€˜OSFCโ€™) 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 โ€œStateโ€ 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 borrowerโ€™s assets. These corporations cannot be held personally liable. The judgement has reaffirmed the principle established in the Assam Small Scale Industries case.

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Associate Legal Counsel SIDBI Recruitment 2025 | Apply Online for 2 Vacancies (Contractual)

Associate Legal Counsel SIDBI Recruitment 2025 โ€“ Apply Now

Associate Legal Counsel SIDBI recruitment 2025 is now open, offering an excellent opportunity for experienced legal professionals to join the Small Industries Development Bank of India (SIDBI) on a contractual basis. With two vacancies available across Pan India locations, this recruitment drive is designed for candidates with strong expertise in banking, finance, contracts, and litigation. Applications must be submitted by 18th August 2025.

About SIDBI

The Small Industries Development Bank of India (SIDBI) was established on 2nd April 1990 under an Act of Parliament as the apex financial institution for promoting, financing, and developing the Micro, Small, and Medium Enterprises (MSME) sector. Over the past three decades, SIDBI has emerged as a key driver of Indiaโ€™s economic growth by supporting MSMEs through financial assistance, capacity building, and policy advocacy.

Headquartered in Lucknow with offices across the country, SIDBI plays a pivotal role in coordinating with institutions engaged in MSME financing and development. The recruitment of Associate Legal Counsel SIDBI reflects the institutionโ€™s ongoing need for legal expertise in contracts, compliance, litigation, and risk management.

Position Details

  • Post: Associate Legal Counsel
  • Type: Contractual (fixed tenure, renewable as per performance and requirements)
  • Mode: Onsite (Pan India postings, depending on SIDBIโ€™s requirements)
  • Vacancies: 02
  • Salary/Stipend: As per SIDBI contractual norms (not disclosed in the notification)

Eligibility Criteria

Applicants for Associate Legal Counsel SIDBI recruitment 2025 must meet the following requirements:

  • Age Limit: 28โ€“35 years
  • Educational Qualification:
    • Degree in Law (3-year or 5-year program) with at least 50% marks
    • Postgraduate degree in Law is preferred but not mandatory
  • Work Experience: Minimum 5 years of professional experience in:
    • Commercial Bank, Financial Institution, NBFC, reputed corporate, or government body, OR
    • As a practicing advocate with minimum 5 years of legal advisory/litigation experience, OR
    • A mix of both corporate and independent practice
  • Preferred Expertise:
    • Drafting and vetting contracts, deeds, and pleadings
    • Title investigations and conveyancing
    • Handling recovery and litigation matters
    • Liaising with external counsel, advocates, and solicitors
    • Strong understanding of financial and institutional legal matters
  • Skills:
    • Computer proficiency and ability to use digital legal tools
    • Excellent communication and drafting skills

Key Responsibilities

The selected candidates for Associate Legal Counsel SIDBI will be responsible for:

  • Drafting, vetting, and reviewing contracts, deeds, plaints, petitions, and claims
  • Providing legal advice on institutional and financial transactions
  • Conducting conveyancing and title verification for assets and securities
  • Handling litigation and recovery matters in coordination with external advocates
  • Ensuring compliance with statutory requirements and minimizing legal risks
  • Supporting SIDBI in policy-related and institutional matters requiring legal expertise

Skills & Competencies

  • Strong knowledge of commercial laws, banking regulations, and contract law
  • Practical litigation and recovery management skills
  • Analytical ability to identify legal risks and propose solutions
  • Communication and negotiation skills for dealing with clients and external advocates
  • Digital proficiency in legal research and drafting tools

Why Join SIDBI as Associate Legal Counsel?

Working as an Associate Legal Counsel at SIDBI is more than just a contractual roleโ€”it provides an opportunity to:

  • Contribute to the legal management of a national-level financial institution
  • Work closely with senior officials and legal experts in the banking and finance sector
  • Gain exposure to complex legal issues involving MSME financing, contracts, and compliance
  • Enhance professional credibility by being associated with a reputed statutory institution

Application Process

Interested candidates for Associate Legal Counsel SIDBI recruitment 2025 must:

  1. Download the prescribed application form from the official SIDBI careers page.
  2. Fill in the required details carefully, ensuring all eligibility criteria are met.
  3. Submit the completed application form via email to recruitment@sidbi.in before the deadline.
  4. Keep a copy of the application and supporting documents for reference.

Important Dates

  • Application Deadline: 18th August 2025
  • Mode of Application: Online via email submission
  • Interview/Selection Process: Shortlisted candidates will be contacted for further selection rounds (interview/document verification).

Career Growth & Future Prospects

While the position is contractual, working as an Associate Legal Counsel at SIDBI can open pathways to:

  • Future opportunities within SIDBI (subject to performance and availability of permanent posts)
  • Career growth in banking/financial institutions
  • Building expertise in handling high-value legal matters in finance and development sectors

Conclusion

The Associate Legal Counsel SIDBI recruitment 2025 is a prestigious opportunity for legal professionals looking to advance their careers in the financial sector. With only two vacancies open, competition is expected to be high. Interested candidates are strongly encouraged to apply before the last date, 18th August 2025.

For more details and to apply, visit the official SIDBI careers portal or send applications directly to recruitment@sidbi.in.


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