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Section 31: Power to remove difficulties

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 30 All 32 Sections of MSMED Act Section 32
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Legal Commentary & Landmark Judgments: Section 31

Section 31 provides the statutory mechanism for legislative scrutiny, requiring all rules framed by the Central and State Governments under the MSMED Act to be laid before Parliament and the respective State Legislatures.

  • Parliamentary Laying Procedure: Every rule made by the Central Government must be laid before each House of Parliament for a total period of thirty days while in session.
  • Legislative Modification and Annulment: If both Houses agree in making any modification or agree that the rule should not be made, the rule thereafter has effect only in such modified form or is of no effect.
  • State Legislative Laying Mandate: Rules made by State Governments under Section 30 must similarly be laid before the State Legislature as soon as they are made.
Key Landmark Precedents:
  • Atlas Cycle Industries Ltd. v. State of Haryana (1979) 2 SCC 196: The Supreme Court held that statutory laying clauses ensure legislative oversight of delegated executive power, clarifying the distinction between mandatory and directory laying provisions.
  • Quarry Owners' Association v. State of Bihar (2000) 8 SCC 655: Affirmed that the requirement of laying rules before the legislature reinforces democratic accountability and serves as a check against executive overreach.
Courtroom Practice & Strategic Litigation Guidance:

In constitutional challenges to controversial notifications or rules issued under the Act, verify through legislative records whether the mandatory laying requirements of Section 31 were satisfied, using parliamentary proceedings as evidence of legislative intent.

Section 30 All 32 Sections of MSMED Act Section 32