MSME Samadhaan — Recover Delayed Payments Through the Facilitation Council
If a buyer has paid your micro or small enterprise beyond the statutory 45 days, the MSMED Act, 2006 entitles you to the principal plus compound interest. We prepare and file your delayed-payment application on the MSME Samadhaan portal and represent your claim before the Facilitation Council.
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What Is MSME Samadhaan?
A plain-language overview before the statutory detail.
MSME Samadhaan lets a registered micro or small supplier file an online complaint against a buyer who has delayed payment beyond the time allowed by law, and claim the unpaid amount together with statutory interest.
The Micro, Small and Medium Enterprises Development Act, 2006 fixes the buyer's liability to make payment (Section 15), charges compound interest on default (Section 16), disallows that interest as a business expense for the buyer (Section 23), and refers unresolved claims to the Facilitation Council for conciliation and arbitration (Sections 17 and 18).
The Samadhaan portal is operated by the Office of the Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises, Government of India. Claims are decided by the State/UT Micro & Small Enterprise Facilitation Councils (MSEFC).
A filed application stays live on the portal until the MSEFC disposes of it by mutual settlement, an arbitral award, or dismissal. Only micro and small enterprises with a valid Udyam registration on the date of supply can file.
Quick Facts
Is This Service Right for You?
Ideal for
- Micro and small suppliers with invoices unpaid beyond 45 days
- Vendors to large corporates, PSUs or government departments
- Manufacturers and service providers holding a valid Udyam certificate
- MSMEs facing repeated or part-payment delays from a buyer
- Suppliers who want statutory interest, not just the principal
- Businesses wanting a formal, low-cost alternative to a civil suit
You may need this if
- A buyer has not paid within the agreed date or within 45 days
- You supplied goods or rendered services under a valid Udyam registration
- You want to claim compound interest at 3× the RBI bank rate
- Informal reminders and follow-ups have not worked
- You want the dispute heard by the Facilitation Council
- You need the buyer put on notice under the MSMED Act
Not sure if you need this?
Talk to an Expert →Why File Under MSME Samadhaan?
The MSMED Act gives micro and small suppliers a statutory, time-bound recovery mechanism that a normal recovery notice does not. Here is what it puts in your favour.
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01
Statutory Backing
Your claim rests on Sections 15 to 18 of the MSMED Act, 2006 — not just on the sale contract. The buyer's obligation to pay within the agreed date, or 45 days, is fixed by law.
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02
Compound Interest
On default, Section 16 entitles you to compound interest with monthly rests at three times the bank rate notified by the RBI, running from the appointed day until actual payment.
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03
Council Adjudication
The application is referred to the Micro & Small Enterprise Facilitation Council, which conciliates first and, if that fails, takes up the dispute for arbitration under Section 18.
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04
No Court Filing Fee
Filing on the Samadhaan portal carries no government fee. It is a far lighter and cheaper route than instituting a civil recovery suit for the same claim.
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05
Pressure on the Buyer
A buyer cannot deduct the Section 16 interest as an expense (Section 23), and delayed payments to MSEs are also disallowed for the buyer under Section 43B(h) of the Income-tax Act — real reasons to settle.
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06
Transparent Tracking
The Samadhaan portal is a government monitoring system: the application status, hearings and council orders are recorded online and visible to you throughout.
Simple, Transparent Pricing
Custom quote for your case
Fees depend on your business type and scope. Get a clear, itemised quote upfront — no hidden professional charges, government fee billed at actuals.
Who Can Apply?
Eligibility checklist
- A valid Udyam registration that was in force on the date of supply
- The enterprise must fall in the micro or small category (medium enterprises are not covered for delayed-payment claims)
- An actual supply of goods or services with an accepted invoice
- Payment not received within the agreed date, or within 45 days where there is no written agreement
- The claim relates to the unpaid principal and the interest that follows under Section 16
Everything You Need. One Professional Team.
Case Assessment
Review your invoices, Udyam status and correspondence to confirm the claim is maintainable under the MSMED Act.
Appointed-Day Working
Fix the appointed day and the point from which interest runs, based on acceptance or deemed acceptance of your supply.
Interest Computation
Compute compound interest with monthly rests at three times the RBI bank rate, right up to the date of filing.
Application Drafting
Draft the delayed-payment application with the statement of claim, invoice schedule and interest working.
Portal Filing
File on samadhaan.msme.gov.in and upload the supporting documents in the required format.
Council Coordination
Track the reference to the MSEFC and coordinate conciliation and hearing dates on your behalf.
Representation
Present your case at conciliation and, if it proceeds, through the arbitration stage under Section 18.
Follow-Through
Assist with the council's settlement or award and the steps that follow it.
What You’ll Receive
What Documents Are Required to File on Samadhaan?
Keep clear scans (PDF/JPG) of the following ready. The stronger your proof of supply, acceptance and the amount outstanding, the smoother the conciliation.
Enterprise & registration
- Udyam Registration Certificate valid on the date of supply
- PAN of the enterprise
- Constitution proof — partnership deed / LLP agreement / Certificate of Incorporation
- Authorisation of the person filing on behalf of the enterprise
Supply & payment proof
- Copies of the unpaid invoices / bills
- Purchase order, work order or written agreement (if any)
- Proof of delivery / acceptance of goods or services (e-way bill, GRN, sign-off)
- Ledger / account statement showing the outstanding amount and any part-payments
Correspondence & claim
- Payment reminders, emails and any reply from the buyer
- Bank statement evidencing non-receipt of payment
- Interest computation worked out under Section 16
- Buyer's name, address and details for the reference
Udyam must pre-date the supply
The delayed-payment protection applies where the enterprise held a valid Udyam (or earlier EM-II/Udyog Aadhaar) registration on the date it supplied the goods or services. A registration taken afterwards does not cover earlier invoices.
Know your appointed day
The appointed day is the day immediately after 15 days from acceptance (or deemed acceptance) of the supply. Where there is a written agreement, the agreed date governs — but it can never exceed 45 days.
Interest is compound, monthly
Section 16 interest is compounded with monthly rests at three times the bank rate notified by the RBI. Simple interest or a contractual rate cannot override this statutory rate.
File in the right state
The application is heard by the MSEFC of the State/UT where the supplier is located. We confirm the correct council before filing so the reference is not misdirected.
Don’t have all the documents?
We’ll identify what your case needs →How an MSME Samadhaan Claim Works (Step by Step)
The claim is filed entirely online and then adjudicated by the Facilitation Council.
Confirm eligibility & Udyam status
Verify that your enterprise is micro or small and held a valid Udyam registration on the date of the disputed supply.
Establish the appointed day
Fix the date payment fell due — the agreed date, or 45 days from acceptance/deemed acceptance where there is no written agreement.
Compute the claim
Total the unpaid principal and compute compound interest with monthly rests at three times the RBI bank rate up to the filing date.
Prepare the application
Draft the delayed-payment application, statement of claim, invoice schedule and interest working, with all supporting documents.
File on the Samadhaan portal
Submit the application at samadhaan.msme.gov.in against the buyer and receive the portal acknowledgement.
Reference to the MSEFC
The application is placed before the Micro & Small Enterprise Facilitation Council, which first attempts conciliation between the parties.
Conciliation, then arbitration
If conciliation succeeds, a settlement is recorded. If it fails, the council takes up the dispute for arbitration under Section 18 and passes an award.
Statutory Timelines Under the MSMED Act
| Stage | Expected Time |
|---|---|
| Buyer's payment — with a written agreement | On or before the agreed date (max 45 days) |
| Buyer's payment — no written agreement | Within 45 days of acceptance / deemed acceptance |
| Interest under Section 16 | Runs from the appointed day until payment |
| MSEFC decision on the reference | To be decided within 90 days (Sec 18) |
These are statutory timelines under the MSMED Act, 2006, not service promises. The Facilitation Council is required to complete conciliation or arbitration within 90 days of the reference; actual disposal depends on the council's cause list, hearings and the parties' conduct.
Key Dates — At a Glance
| Frequency | What Is Due |
|---|---|
| On filing | Portal acknowledgement received · Buyer notified of the reference · Statement of claim on record |
| Conciliation | Council attempts a settlement · Both parties heard · Settlement recorded if agreed |
| Arbitration | Taken up under Section 18 if conciliation fails · Council decides within 90 days · Arbitral award passed |
| After the award | Award binds the buyer · Buyer's challenge needs a 75% pre-deposit · Guidance on enforcement steps |
Dates are indicative and may change with government notifications. Our team tracks every deadline so you never miss a filing.
Doing It Yourself vs TaxClue
Doing It Yourself
- Interpret the appointed day and the 45-day rule yourself
- Compute compound interest with monthly rests correctly
- Identify the correct State/UT Facilitation Council
- Draft a statement of claim that holds up at conciliation
- Compile invoices, proof of acceptance and correspondence
- Attend conciliation and arbitration hearings unassisted
- Risk dismissal for a defective or misdirected application
With TaxClue
- Appointed day and interest fixed accurately under the Act
- Compound interest computed with monthly rests at 3× RBI rate
- Filed before the correct MSEFC the first time
- A clear, evidenced statement of claim
- Documents organised for the council
- Representation at conciliation and arbitration
- A stronger, better-prepared case
Skip the guesswork.
Let an expert handle it →Common Mistakes That Delay Your Application
TaxClue reviews your documents before filing to reduce avoidable errors.
After the Application Is Filed
On filing
- Portal acknowledgement received
- Buyer notified of the reference
- Statement of claim on record
Conciliation
- Council attempts a settlement
- Both parties heard
- Settlement recorded if agreed
Arbitration
- Taken up under Section 18 if conciliation fails
- Council decides within 90 days
- Arbitral award passed
After the award
- Award binds the buyer
- Buyer's challenge needs a 75% pre-deposit
- Guidance on enforcement steps
Penalties & Consequences
What is at stake if you do not comply
- An unregistered MSME cannot file on Samadhaan or use the MSEFC forum
- The buyer's delayed payment attracts compound interest at three times the RBI bank rate
- The buyer's expense is disallowed under Section 43B(h) until a registered MSME supplier is paid
- A weak or incomplete application delays the reference before the council
Regulatory Updates 2025–26
- 2025: Delayed-payment claims are filed on the MSME Samadhaan portal and heard by the Micro & Small Enterprises Facilitation Council (MSEFC).
- 2025: Under the MSMED Act 2006, buyers must pay micro and small suppliers within 45 days, with interest at three times the RBI bank rate on delay.
Why Businesses Choose TaxClue
MSME Specialists
A team that handles delayed-payment claims under the MSMED Act every day.
Statutory Accuracy
Appointed day, interest and sections applied strictly as the Act requires.
Transparent Fees
A clear, itemised quote upfront — no hidden professional charges.
Council Experience
Comfortable representing suppliers at conciliation and arbitration.
Evidence First
We build the file on solid proof of supply, acceptance and outstanding.
End-to-End
From assessment to filing to the council's order — one team throughout.
Your Documents Deserve Professional Care
- Invoices and correspondence handled under strict confidentiality
- Access limited to the team working on your claim
- Communication over secure digital channels
- Records retained only as long as needed for the proceeding
Frequently Asked Questions
What is MSME Samadhaan?
Within how many days must a buyer pay an MSME?
What interest can I claim on a delayed payment?
Do I need Udyam registration to file on Samadhaan?
Can a medium enterprise file a Samadhaan claim?
What is the appointed day?
Is there any fee to file on the Samadhaan portal?
What happens after I file the application?
Can the buyer refuse to pay the interest?
What if the buyer challenges the council's award?
Before which council is my case heard?
Is Samadhaan an alternative to going to court?
How do I recover a delayed payment as an MSME on the Samadhaan portal?
What documents do I need to file a Samadhaan application?
How long does a Samadhaan case take to resolve?
Can I track my Samadhaan application after filing?
What is the difference between MSME Samadhaan and the MSEFC?
Official Sources & Legal References
Every figure on this page — the 45-day limit, the interest rate, the sections and the council process — is drawn from primary law and official government sources. Verify them directly:
- MSME Samadhaan PortalOfficial portal to file and track a delayed-payment application against a buyer
- MSMED Act, 2006 — full textSections 15 to 18 (payment liability, interest, reference and council) · India Code
- Ministry of MSMEMinistry of Micro, Small and Medium Enterprises, Government of India
- Udyam Registration PortalRegister or verify Udyam status — a prerequisite to a Samadhaan claim
Related Guides
MSME Samadhaan Resources — All Free
Recover What Your Enterprise Is Owed
From assessing the claim and computing statutory interest to filing on the Samadhaan portal and representing you before the Facilitation Council — our experts handle the delayed-payment process end-to-end. Free consultation, transparent fees.