MSME Delayed Payment Claim Builder (India): Samadhaan and MSEFC

About the MSME Delayed Payment Claim Builder (India): Samadhaan and MSEFC

When a buyer pays a micro or small enterprise late, the MSMED Act gives the supplier two strong tools: compound interest with monthly rests at three times the RBI Bank Rate (section 16), whatever the contract says, and a reference to the Micro and Small Enterprises Facilitation Council of its State (section 18), filed online through MSME Samadhaan. The Council first tries conciliation, then decides the dispute as an arbitrator, and a buyer that wants to challenge its award must first deposit 75% of it in court (section 19).

This builder prepares the papers for that reference from your Udyam details, the buyer, the order and each unpaid or late-paid invoice: the statement of claim in numbered paragraphs with the relief and the verification, Annexure A with the acceptance and section 15 due date of every invoice, Annexure B with the interest worked month by month at the Bank Rates in force, Annexure C listing your documents, an optional demand letter to send first, and the affidavit the portal asks for when the order was oral. The checks follow the Act and the portal’s own FAQ: Udyam before the invoice, trading units and overseas buyers, cases already in court, limitation.

Without a pass, the free preview shows every page of the pack with your entries and the first part of the wording readable. The DOCX, PDF and text files, Print, Copy and the interest workbook unlock with a Premium pass. Nothing you enter leaves your device.

Common uses

• A micro manufacturer whose large buyer holds invoices for months beyond the 45 days.
• A service provider claiming interest on bills a Government department paid late.
• Preparing the papers before visiting the Council, or for your chartered accountant or advocate to check.
• Sending a demand letter with the interest worked out, and filing the same figures if it is not paid.

Who can claim, and against whom

• Micro and small enterprises with a valid Udyam registration made before the invoices in dispute: the benefit cannot be taken back in time (FAQ Q.4, Q.6). A small enterprise that became medium keeps its earlier category’s benefits for three years from the change (Q.43); a medium enterprise otherwise cannot claim.
• Manufacturers and service providers. Units registered for trading (NIC codes 45, 46 and 47) are not admitted (Q.18).
• Buyers anywhere in India, Government departments included (Q.29; section 18(4)); the Act does not reach overseas buyers (Q.36).
• No case in court for the same amount: a sum claimed in a civil court cannot be claimed before the Council (Q.30).
• Within limitation: the Limitation Act applies to these claims (Q.33), so a claim filed more than three years after payment fell due may be time-barred, unless a written acknowledgment, such as a signed balance confirmation, or a part payment started the time again.
• No legal notice is needed before filing (Q.19), and interest alone can be claimed after the principal was paid (Q.20).

Due dates and interest

• Section 15: the buyer pays on the date agreed in writing, which can never be more than 45 days from acceptance, or, with no agreement in writing, before the appointed day, the day after 15 days from acceptance. Acceptance is the day of delivery or of the service; when the buyer objected in writing within 15 days, the day the supplier removed the objection.
• Section 16: from the next day the buyer owes compound interest with monthly rests at three times the Bank Rate notified by the Reserve Bank of India, notwithstanding anything in the agreement. The portal’s FAQ confirms monthly compounding (Q.23).
• The builder uses the RBI’s Bank Rate as it changed over the period (built in for interest from the middle of 2015, with the latest change), or one rate you choose; you can add a change it does not know.
• Payments go to the invoice you name, or to the oldest dues; you choose whether they pay the principal or the interest first.

Filing on MSME Samadhaan

1. On MSME Samadhaan, open case filing and enter your Udyam number; the OTP goes to the e-mail registered on Udyam (FAQ Q.12).
2. Fill in the buyer and the invoices, and upload the work order (or, for an oral order, the affidavit) and the invoices as one PDF (Q.10, Q.11). Acknowledgements on invoices, delivery challans, part payments and e-mails count as evidence too (Q.39).
3. The application goes to the Council of the State you chose, that of your registered office or of the unit named on Udyam (Q.17); its address comes in the acknowledgement e-mail (Q.9).
4. Send the Council the signed and verified hard copy of the claim (Q.34). A company appears through its managing director with a board resolution, and a firm through its managing partner (Q.38).
5. The Council converts the application into a case (Q.8), tries conciliation, then arbitrates; every reference is to be decided within 90 days (section 18(5)).

Sources

The MSMED Act, 2006 as published in the Gazette of India (sections 2, 15 to 19, 22 and 23), the MSME Samadhaan FAQ and portal, the Reserve Bank of India for the Bank Rate, and Udyam Registration.

Limitations

• A draft for you to check, not legal advice: the Council decides the claim, and an advocate or chartered accountant can review it before you file.
• The interest follows the Act’s formula on the dates and payments you enter. Wrong dates of acceptance or payments give a wrong claim.
• The builder prepares the papers; you file the application on MSME Samadhaan yourself and send the signed copy to the Council.
• State rules of the Councils differ on forms and copies; follow what your Council asks for.

Privacy

The claim is built in your browser and nothing is uploaded. A draft is kept in this browser only if you tick “Keep a draft in this browser”.