MSME Samadhaan · Delayed Payments · MSMED Act 2006

MSME Samadhaan Claim Checklist

Every step to recover a delayed payment from a buyer under the MSMED Act — check eligibility, gather documents, file on the Samadhaan portal and follow up with MSEFC. Tick each item and track your progress live.

Category
Startup & Funding
Takes about
1 min
Updated
Sep 2026
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🎯 Eligibility Phase 1

Confirm you actually qualify to file a delayed-payment claim before you begin.

📄 Documents Phase 2

Assemble the proof of supply, the outstanding amount and the interest computation.

🖥️ File Phase 3

Lodge the application on the MSME Samadhaan portal.

⚖️ Follow-up Phase 4

See the case through conciliation, arbitration and recovery.

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The 4 phases at a glance

PhaseWhat it coversKey output
1 · EligibilityUdyam/MSME status, accepted supply, 45-day overdue test, you are the supplierClaim qualifies
2 · DocumentsUdyam cert, PO, invoices, proof of delivery, ledger, terms, reminders, interest calcEvidence set
3 · FileRegister on Samadhaan portal, enter buyer/invoices, upload docs, compute Sec 16 interest, submitApplication filed
4 · Follow-upConciliation, hearings before the MSEFC, award, and enforcement of recoveryDues recovered
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Disclaimer: Indicative checklist for a delayed-payment claim by a micro/small enterprise under the MSMED Act, 2006. Procedure and interest follow current Samadhaan / MSEFC practice and may change; verify requirements for your case.

How MSME Samadhaan works

MSME Samadhaan is the online grievance system where a registered micro or small enterprise can file against a buyer who has not paid on time. Under the MSMED Act, 2006 a buyer must pay by the agreed date — or within 45 days of accepting the goods/services — failing which statutory compound interest becomes payable. The claim runs in four phases, from confirming eligibility to enforcing the MSEFC award.

STEP 1

Check eligibility

Confirm you are a Udyam-registered micro/small supplier and the payment is overdue beyond the agreed date or 45 days.

STEP 2

Gather documents

Collect Udyam cert, PO, invoices, proof of delivery, ledger and reminders, and compute principal plus Sec 16 interest.

STEP 3

File on portal

Register on the Samadhaan portal, enter buyer & invoice details, upload documents, compute interest and submit.

STEP 4

Follow up

Respond to MSEFC conciliation, attend hearings, obtain the award and enforce recovery if the buyer still won't pay.

Key terms explained

The 45-day rule (Sec 15)

Under Section 15 of the MSMED Act, a buyer must pay the MSME supplier on or before the date agreed in writing. If no date is agreed, payment is due within 45 days of the day the goods or services are accepted — anything later is a delayed payment.

MSEFC

The Micro & Small Enterprises Facilitation Council is the state body that handles Samadhaan cases. It first attempts conciliation between the parties and, if that fails, acts as the arbitrator and passes a binding award.

3× bank rate interest (Sec 16)

Section 16 makes the buyer liable for compound interest — at three times the RBI notified bank rate, compounded with monthly rests — on the overdue amount from the appointed day until actual payment, regardless of any agreement to the contrary.

Sec 15–16 MSMED Act

Together, Sections 15 & 16 fix the payment timeline and the penal interest for breach; Samadhaan is simply the digital route to invoke them, with the MSEFC empowered to conciliate, arbitrate and award principal plus interest.

Questions people ask

Short answers on MSME Samadhaan Claim Checklist. Tap a question to open it.

01What is MSME Samadhaan?

A portal through which a registered micro or small enterprise can file a claim against a buyer who has not paid within the statutory period. The case is taken up by the Micro and Small Enterprise Facilitation Council in the supplier's state for conciliation and, failing that, arbitration.

02Who can file a Samadhaan claim?

Only a supplier that held a valid Udyam registration as a micro or small enterprise at the time the goods were supplied or the services rendered. A medium enterprise cannot use the delayed-payment provisions.

03What documents are needed?

The Udyam registration certificate, the purchase order or contract, invoices, proof of delivery or acceptance, the ledger showing the outstanding, and copies of reminders sent to the buyer.

04How long does the Council take?

The MSMED Act requires proceedings to be concluded within 90 days of reference. In practice timelines vary by state, but the statutory position gives the supplier a clear basis to press for a hearing.

05Does the buyer face any other consequence?

Yes. Under section 43B(h) of the Income-tax Act, a payment to a micro or small enterprise that is not made within the statutory time is not deductible in the year of accrual and is allowed only in the year of actual payment.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.