Kerala HC Issues Notice On Plea Challenging Micro & Small Enterprise Facilitation Council Rules For Being Inconsistent With MSMED Act

When the matter came for admission on Tuesday, Justice Mohammed Nias C.P. issued notice to the parties.

The petition was filed by M/s Malabar Furniture Consortium Pvt. Ltd. which is the respondent in a proceeding before the Micro and Small Enterprises Facilitation Council initiated for recovery of alleged unpaid GST and interest. The proceedings were transferred to the Regional Council, Ernakulam, which is chaired by the General Manager (5^th respondent).

The petitioner claims that the 5^th respondent is not a competent person to chair the Regional Counsel as per Section 21 of the Act since he is not the Director of Industries or an officer not below the said rank. However, as per the Rules notified by the State government, chairpersons of Regional Councils can be General Managers of District Industries Centres, who are below the rank of Director as required under Section 21.

It is also alleged that the Rules were not laid before the Legislative Assembly as required under Section 30(3) of the Act and were brought into force immediately. Thus, it is stated that the Rules are inconsistent with Sections 21 and 30(3) of the Act.

Thus, the petitioner has challenged the Rules notified by the government of Kerala.

As an interim prayer, the petitioner is seeking to stay the proceedings against it which is pending before the Regional Council (4th respondent) and presided over the the 5th respondent chairperson.

The petition is moved by Advocates Manas P. Hameed, Ipsita Ojal, Anil Kumar K.P., and Mariyamma A.K.

Case No: WP(C) No. 33251 of 2025

Case Title: M/s Malabar Furniture Consortium Pvt. Ltd. v. Union of India and Ors.