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.

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Medical Negligence in India: Legal Principles, Key Cases & Patient Rights

Medical Negligence and Legal Principles around it

Medical Negligence

The failure of a healthcare provider to provide the standard of care that is required in their industry, which results in harm or injury to a patient, is referred to as medical negligence, also known as medical malpractice. Hospitals, clinics, and private practices are just a few of the healthcare environments where this neglect can take place. It is a legal notion with grave ramifications for both patients and medical professionals.

Patients put a lot of faith in the ability of doctors, nurses, surgeons, and other healthcare professionals to give the best possible treatment. They demand not only talent and knowledge but also a dedication to their security and well-being. Unfortunately, there are times when this confidence is betrayed because of carelessness or mistakes made during the medical procedure. These mistakes can take many different forms, from incorrect diagnosis and surgical blunders to incorrect medicine administration and birth traumas.

Navigating the complicated world of legal norms, medical standards, and ethical issues is necessary to comprehend medical negligence. The existence of a duty of care, a violation of that duty, a direct causal relationship establishing that the breach caused the patient’s injury, and actual patient damages must all be proven in order to establish medical malpractice.

Medical experts who have knowledge of whether a healthcare provider’s activities departed from the accepted standard of care are frequently called upon to testify in medical malpractice trials. These expert witnesses are essential in determining if a lawsuit has substance and can offer vital advice throughout the courtroom proceedings.


Components of Medical Negligence

1. Existence of Legal Duty
A doctor is under an implied legal obligation to exercise due diligence and is expected to act in the standard course of a medical practitioner like his or her contemporaries when another person approaches him or her with a medical problem. The other person trusts the doctor to possess specific skills or special knowledge on the matter at hand.

2. Breach of Legal Duty
A doctor is under an implied legal obligation to exercise due diligence and is expected to act in the standard course of a medical practitioner like his or her contemporaries when another person approaches him or her with a medical problem. The other person trusts the doctor to possess specific skills or special knowledge on the matter at hand.

3. Damages
Establishing damages is a critical component in a medical malpractice case. It is not sufficient to merely assert that a healthcare practitioner violated their duty of care or caused harm; you must also demonstrate that actual and quantifiable losses or harm resulted from the provider’s conduct or negligence. Any claim of medical malpractice must include the element of damages. It is the feature that emphasizes the actual, palpable effects of a healthcare provider’s purported neglect. It is critical to show that the patient actually experienced losses as a result of the healthcare provider’s conduct in order to create a strong medical negligence case. Damage can be of various types like physical harm, financial damage, mental harm, pain and suffering, and even death.


Important Case Laws

  • State of Haryana v. Smt Santra
    The Supreme Court ruled that every doctor has a responsibility to exercise a reasonable amount of care. Although no one is flawless in this world and even experts make mistakes, a doctor can only be held accountable if he fails to exercise the same level of reasonable care that any other doctor with similar training would be able to.
  • Indian Medical Association vs. P.V. Shantha & Ors.
    The Supreme Court expanded the scope of the Consumer Protection Act to include the medical industry. In contrast to the “contract of service,” which creates a master-servant relationship, the court ruled that the services provided by medical professionals should henceforth be recognized as “service” under Sec. 2(1)(o) of the Consumer Protection Act and would be covered by a “contract for service.” This established the doctor-patient relationship as a contractual one. Patients can now file lawsuits against doctors in consumer protection tribunals for damages if they suffered any injuries during the course of their treatment.
  • Poonam Verma v. Ashwin Patel
    In this case, the Supreme Court established what constitutes criminal culpability and distinguished between negligence, recklessness, and rashness. According to the article, someone is said to have acted negligently when they accidentally perform an act or omission that results in a breach of their legal obligations. A person who behaves hastily when they know the implications but naively believe they won’t happen as a result of their action. A careless individual is aware of the consequences but doesn’t give a damn if they are the result of their actions. Any behavior that is not reckless or intentional wrongdoing should not be subject to criminal prosecution, according to the Court.

Conclusion

The patient may be entitled to damages if these factors are established as true in a court of law. Due to the complexity of these issues, it is frequently necessary to rely on expert medical testimony to prove a duty breach. A trained lawyer with experience in handling medical malpractice claims should be consulted if you think you are the victim of medical negligence so they can assess your case and help you navigate the legal system.


By – Adeeb Akhtar,
3rd Year, Maharashtra National Law University, Chhatrapati Sambhajinagar

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