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Section 8: Memorandum of micro, small and medium enterprises

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

MSME Law
3x Compound Interest
MSEFC Facilitation Council
Act 27 of 2006
Section 7 All 32 Sections of MSMED Act Section 9
Statutory Defined Terms in this Section: (Click any term for official legal definition)
Enterprise Sec 2 Supplier Sec 2

Legal Commentary & Landmark Judgments: Section 8

Section 8 governs the filing of the memorandum by micro, small, and medium enterprises (now operationalized as Udyam Registration), functioning as the critical gateway for availing statutory benefits and invoking MSEFC jurisdiction.

  • Udyam Registration Framework: Replaced erstwhile Entrepreneur Memorandum (EM-I and EM-II) with paperless, self-declaration Udyam Registration linked to Aadhaar and PAN on the national portal.
  • Discretionary vs Mandatory Filing: Discretionary for micro and small enterprises; mandatory for medium enterprises engaged in manufacture under original Section 8(1)(a).
  • Condition Precedent for Statutory Protection: While filing is optional for enterprise existence, it is mandatory to acquire the legal character of a 'supplier' under Section 2(n) for Chapter V delayed payment protections.
Key Landmark Precedents:
  • Silpi Industries v. Kerala State Road Transport Corpn. (2021) 18 SCC 790: The Supreme Court settled the controversy, ruling that filing of memorandum under Section 8 is mandatory to claim the status of 'supplier' under Section 2(n); registration obtained after the date of contract or execution of work does not relate back and cannot confer retrospective jurisdiction under Section 18.
  • Gujarat State Civil Supplies Corpn. v. Mahakali Foods (P) Ltd. (2023) 6 SCC 401: Affirmed Silpi Industries, holding that benefits under the MSMED Act are prospective; an enterprise registered under Section 8 can invoke Facilitation Council remedies only for supplies made subsequent to the effective registration date.
  • Vaishno Enterprises v. Hamilton Medical AG (2022 SCC OnLine SC 355): Set aside MSEFC proceedings where the supplier executed the contract and supplied goods prior to obtaining Udyam/MSME registration under Section 8.
Courtroom Practice & Strategic Litigation Guidance:

Scrutinize the Udyam Registration Certificate: check whether the specific National Industrial Classification (NIC) code for the goods or services in dispute is recorded and whether the date of registration precedes the purchase order. If registration post-dates the contract, move for immediate dismissal before the MSEFC under Silpi Industries.

Section 7 All 32 Sections of MSMED Act Section 9