Module: General Practice
Q45: Scenario: "SolarTech Solutions," a Micro Enterprise, has successfully supplied solar lamps worth Rupees 20 Lakh to a Central Public Sector Unit (PSU). The PSU accepted the goods on January 1, 2026. The contract did not specify a payment date. As of February 2026, the payment has not been made.
Question: Under the specific provisions of Section 2(b) and Section 16 of the MSMED Act, 2006, from which exact date does the liability to pay compound interest start?
✅ Correct Answer: C
Since no agreement exists, the Act mandates payment within 15 days of acceptance.
Acceptance was on Jan 1. The 15-day period expires on Jan 16.
Section 2(b) defines the "Appointed Day" as the day following immediately after the expiry of the period of fifteen days.
Thus, the Appointed Day is January 17.
Section 16 states liability to pay interest starts "from the appointed day." Therefore, interest accrues starting January 17.
Acceptance was on Jan 1. The 15-day period expires on Jan 16.
Section 2(b) defines the "Appointed Day" as the day following immediately after the expiry of the period of fifteen days.
Thus, the Appointed Day is January 17.
Section 16 states liability to pay interest starts "from the appointed day." Therefore, interest accrues starting January 17.