Section 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 2(b) defines the "appointed day", the date from which an MSME supplier's payment becomes due when nothing was agreed in writing. It is built on two other ideas in the Explanation: the day of acceptance and the day of deemed acceptance. Nearly every delayed payment calculation under Chapter V starts from these three definitions.
The appointed day is the day following immediately after the expiry of fifteen days from the day of acceptance, or the day of deemed acceptance, of the goods or services. The day of acceptance is the day of actual delivery, or, if the buyer objects in writing within 15 days, the day the supplier removes the objection. If the buyer makes no written objection within 15 days, the day of deemed acceptance is the day of actual delivery.
The text of section 2(b)
Clause (b) says "appointed day" means the day following immediately after the expiry of the period of fifteen days from the day of acceptance or the day of deemed acceptance of any goods or any services by a buyer from a supplier. The Explanation then defines both trigger days.
| Term | Meaning under the Explanation |
|---|---|
| Day of acceptance, limb (a) | The day of the actual delivery of goods or the rendering of services. |
| Day of acceptance, limb (b) | Where the buyer makes an objection in writing regarding acceptance within fifteen days from the day of delivery or rendering, the day on which the supplier removes that objection. |
| Day of deemed acceptance | Where the buyer makes no objection in writing within fifteen days from the day of delivery or rendering, the day of actual delivery or rendering. |
Two points stand out. The objection must be in writing, and it must be made within fifteen days of delivery or rendering. An oral complaint on a phone call does not stop the clock.
How the appointed day is used in Chapter V
The appointed day is not a payment rule by itself. It feeds the later sections.
- Under section 15, the buyer must pay on or before the date agreed in writing or, where there is no agreement, before the appointed day. The proviso to section 15 caps any written agreement at forty-five days from the day of acceptance or deemed acceptance.
- Under section 16, interest runs from the appointed day or, where there is a written agreement, from the day immediately following the agreed date.
- Under section 22, a buyer whose accounts are audited must disclose amounts remaining unpaid and payments made beyond the appointed day. Our post on section 22 disclosures and the appointed day covers that duty.
Two tracks: written agreement or no agreement
Because section 15 gives priority to a written agreed date, the appointed day matters most in two situations. The first is where the parties never agreed a date in writing. The second is where the agreement is oral or unclear. In both, the buyer must pay before the appointed day, which is effectively a default term of about fifteen days after acceptance. Where a written agreement exists, the agreed date governs, subject to the forty-five day ceiling. Even then, the day of acceptance or deemed acceptance decides where the forty-five days start.
If you are a supplier working out what a buyer owes, our MSME interest computation service can set out the dates and the interest period from your invoices and delivery records.
Counting the days
The Act says "the day following immediately after the expiry of the period of fifteen days". On the usual convention that the day of acceptance is left out of the count, fifteen days from a delivery on the 1st of a month run out on the 16th, and the appointed day is the 17th. Confirm how the days are counted in your particular matter, since the Act's text does not spell out the counting rule.
Practical examples
Example 1: no objection. A small enterprise delivers goods on 1 March. The buyer says nothing in writing. The day of deemed acceptance is 1 March, the day of actual delivery. The fifteen-day period runs from that date, and the appointed day follows its expiry. Without a written agreement, payment is due before that appointed day.
Example 2: a written objection that is cured. The buyer writes on day 5 that some items are defective. The supplier replaces them and the objection is removed on day 20. Under limb (b), the day of acceptance becomes day 20, and the fifteen days run from there. A supplier who replaces the goods should keep proof of the day the objection was cleared, since that date resets the clock.
Example 3: an objection on day 18. The buyer writes on day 18. The objection is outside the fifteen-day window, so it does not postpone the day of acceptance. The day of deemed acceptance remains the day of delivery. The buyer's rights over quality are a separate matter under the contract; this clause only fixes the payment clock.
Common mistakes
- Treating an email or a WhatsApp message as no objection at all. The Explanation requires "an objection in writing"; whether a particular electronic message qualifies is a factual question, so keep the message itself.
- Counting the fifteen days from the invoice date rather than from delivery or rendering of services.
- Forgetting that the forty-five day limit in section 15's proviso also counts from acceptance or deemed acceptance.
- Assuming an objection made late stops the clock. It does not.
Need help fixing the dates on an MSME dues claim?
Dates drive everything in a delayed payment claim. If you need the acceptance date, the appointed day and the interest period worked out from your records, our MSME interest computation team can prepare the statement for you.
Key takeaways
- The appointed day is the day after the expiry of fifteen days from the day of acceptance or deemed acceptance.
- Day of acceptance: actual delivery or rendering, or the day a written objection made within fifteen days is removed by the supplier.
- Day of deemed acceptance: the day of actual delivery, where there is no written objection within fifteen days.
- The objection has to be in writing and within fifteen days to matter.
- The appointed day feeds sections 15, 16 and 22.
Read next
- MSME Payment Protection: the 45 Day Rule, Sections 15 to 24
- MSMED Disclosures Under Section 22: Five Items and the Appointed Day
- Section 15 of the MSMED Act, 2006: Liability of buyer to make payment
- Section 16 of the MSMED Act, 2006: Compound interest on delayed payment
Disclaimer: Based on the Micro, Small and Medium Enterprises Development Act, 2006 (official text, not amended by the Jan Vishwas Acts of 2023 or 2026) and the Udyam notifications S.O. 2119(E) of 26 June 2020 and S.O. 1364(E) of 21 March 2025, read with later developments noted in the article, as on 30 September 2026. Notifications, rules and the Udyam portal change; verify the current position before acting.