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Section 13: Grants by Central Government

Micro, Small and Medium Enterprises Development Act, 2006 • Official Statutory Text & Practice Guide

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MSEFC Facilitation Council
Act 27 of 2006
Section 12 All 32 Sections of MSMED Act Section 14
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Legal Commentary & Landmark Judgments: Section 13

Section 13 authorizes the Central Government to make budgetary grants and financial allocations to the National Board for Micro, Small and Medium Enterprises to finance the discharge of its statutory functions.

  • Parliamentary Appropriation: Grants are paid to the Board out of the Consolidated Fund of India only after due appropriation by Parliament by law.
  • Financial Solvency of Statutory Bodies: Guarantees administrative and operational funding for research, surveys, policy formulation, and secretarial machinery of the National Board.
  • Executive Disbursement Discretion: Subject to terms, conditions, and budgetary ceilings determined by the Central Government.
Key Landmark Precedents:
  • Union of India v. Association of MSMEs (2018 SCC OnLine Del 9122): The High Court affirmed that statutory appropriations made under Section 13 ensure the institutional independence and investigative efficacy of the National Board.
  • Sanjeev Coke Mfg. Co. v. Bharat Coking Coal Ltd. (1983) 1 SCC 147: Clarified the constitutional doctrine governing statutory grants and parliamentary appropriations for socialized economic programs under Article 39(b) and (c).
Courtroom Practice & Strategic Litigation Guidance:

Cite Section 13 in administrative proceedings to show that statutory councils and boards under the MSMED Act are autonomous statutory entities backed by parliamentary appropriations, distinct from ad-hoc executive committees.

Section 12 All 32 Sections of MSMED Act Section 14