Banaras Beads526849Contract dispute
MSMED Act notice: supplier claims ~Rs. 26.24 lakh; company told to reply within 15 days
Banaras Beads has received a notice from the Assistant Commissioner, Udhyog, Meerut, Uttar Pradesh, under the MSMED Act, 2006.
By ScoutQuest · · 2 min read
Rs. 26,24,373.42Total claim amount
Principal claimed by supplierRs. 24,74,028.60
Interest claimedRs. 1,00,344.82
Legal cost of notice claimedRs. 50000
- Principal claimed
- ~Rs. 24.74 lakh
- Interest claimed
- Rs. 1,00,344.82
- Total claim
- ~Rs. 26.24 lakh
What the company told the exchanges
- It has received a notice from the Assistant Commissioner, Udhyog, Meerut, Uttar Pradesh, vide notice No.382/2026 under Sections 20 and 21 of the Micro, Small and Medium Enterprises Development Act, 2006.
- The notice arises from a claim petition shared under Section 18 by M/s Together Tech Private Limited of Ghaziabad, described in the update as one of the company's suppliers.
- The council has directed the company to submit its reply within 15 days from receipt of the notice. No other direction has been given.
The amounts claimed
- Principal for supplied goods: ~Rs. 24.74 lakh
- Interest: Rs. 1,00,344.82
- Legal cost of the notice: Rs. 50000
- Total claim: ~Rs. 26.24 lakh
What the supplier's petition states
- The petition lists 10 tax invoices aggregating to ₹35,32,024.60 and states that payments of ₹10,57,996.00 were received in three tranches.
- It computes compound interest at 3 times 5.50%, that is 16.50%, up to 03-10-2026.
What the company says in its defence
- Management states that the supplier did not supply goods on time and did not comply with other terms of the purchase order.
- As a result, the company says it could not export the goods in time to its foreign buyer, and that the buyer declined to give any further order for those items.
- The company says the notice and related correspondence has no basis in the MSMED Act or in any contract and is not part of any "amount due" under Section 17 of the MSMED Act, and that the claimant is not entitled to the reliefs prayed for.
Stated impact
- The company puts the maximum impact at ~Rs. 26.24 lakh if the council allows the full claim in future.
- It adds that this does not have any major financial or operational impact on the company's business.
How a retail investor can read this
- This is a claim at the notice stage, not a final order. The company has been asked to reply, and it disputes the claim.
- The figure to keep in mind is the company's own stated worst case of ~Rs. 26.24 lakh.
- The company's defence links the dispute to a missed export order, so the commercial relationship with the supplier and the foreign buyer sits at the centre of the matter.
Also from Banaras Beads
Related party transactions disclosed for quarter and half year ended 30 September 2026
29 Oct 2026
Board approves unaudited standalone Q2 and H1 results; auditors' limited review carries no qualification
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More numbers
- Principal claimed by supplierRs. 24,74,028.60
- Interest claimedRs. 1,00,344.82
- Legal cost of notice claimedRs. 50000
- Total claim amountRs. 26,24,373.42
- Time allowed to reply to notice15 days
- Total of 10 invoices in supplier's petition₹35,32,024.60
- Payments received per supplier's petition₹10,57,996.00
- Compound interest rate applied in petition16.50%
Source: BSE · 30 Oct 2026
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