Form MGT-7/MGT-7A is likely to be revised on MCA21 Company Forms Download page w.e.f 14th October, 2021. Stakeholders are advised to check the latest version before filing.
Section 16 of the MSMED Act provides that in case buyer fails to make payment of amount to the supplier, then the buyer shall be liable to pay compound interest with monthly rest to such supplier. This provision has an overriding effect on the agreement, if any, between the buyer and the MSME supplier.
Rate of Interest – 3 Times of the bank rate (*Current Bank Rate 4.25% p.a) ….