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MSME Samadhaan- Recovery of delayed payments more than 45 Days

Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 provides various benefits to the micro, small and medium enterprises to empower growing business in India. So 'MSME Samadhaan' was introduced to register cases relating to delayed payment by a buyer and settlement of disputes on delayed payments. In this article we shall read about the provision for 45 days delayed payment

Points covered in this article are

  1. Section 15 under MSMED Act, 2006

  2. MSME Samadhaan

  3. Process of filing application under MSME Samadhaan

1. Section 15 under MSMED Act, 2006

MSMED Act has a provision under section 15 that, any buyer who fails to make a payment shall be liable to pay compound interest with monthly rests to the supplier if the payment is not made within 45 days. The interest rate shall be 3 times the bank rate notified by RBI. It has to be noted that this provision is only available for Micro and Small Enterprises i.e., Medium Enterprises are not eligible

● The period of payment cannot exceed beyond 45 days from the date of acceptance or deemed acceptance.

● Day of Acceptance refers to the day on which actual delivery of goods or services is made or where an objection is made by the buyer within 15 days of delivery, day on which objection is removed shall be date of acceptance

● Day of Deemed Acceptance means, where no objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the date of the delivery of goods or the rendering of services, the day of the actual delivery of goods or the rendering of services.


MSMED has an online portal named MSME Samadhaan where the micro and small entreprises can file complaints on buyers who have made a delayed payment. This portal helps to settle the dispute between buyers and sellers regarding late payment.

● This portal was introduced by the Ministry of Micro, Small and Medium Enterprises to facilitate filing of complaint /application on delayed payments

● The Ministry does not take any action on the filed cases. All the action is taken by Micro and Small Enterprise Facilitation Council (MSEFC) established by the State/UTs as per the provisions of MSMED-Act 2006. Only the MSEFC of a concerned state/UT shall take the action

● Not only online application, complaint for delayed payment can be made by filing a physical application in the concerned MSEFC

● For a Micro or Small enterprise to make an application, UAN (Udyog Aadhaar Memorandum) is mandatory. It can be obtained from the MSME portal

3. Process of filing complaint in MSME Samadhaan

1. MSME certificate i.e., Udyog Aadhaar Number (UAN) has to be obtained for any enterprise to file a complaint under the online portal

2. All the proof of delivery such as invoices and other relevant documents should be kept for submission. It is mandatory to specify the UAN on all the invoices sent by the supplier. Along with UAN a note should be given that 'all delayed payments beyond 45 days are liable to monthly interest on compound rate three times the RBI specified cate

3. Intimation has to be made to the buyer that a complaint shall be filed if the payment is not made within the date specified by the seller

5. If the buyer does not make payment within the notified date, a complaint can be filed at

6. The customer shall receive a notice from Micro and Small Enterprise Facilitation Council (MSEFC) and the buyer/customer is bound to reply to the notice within a specified date mentioned in such notice

Frequently Asked Questions

1. Which all enterprises are covered under MSME Samadhaan provision?

Only Small and Micro Enterprises are covered under the benefit. Medium scale enterprises are excluded

2. Can an enterprise without a UAN make an application under section 15- Delayed payment?

No. UAN is mandatory for all the enterprises to make an application. The firms can register for UAN under UAN portal

3. Is only online applications made on delayed payment?

Physical application can be filed directly at the MSEFC office of the concerned State/UT

4. Is there a time limit within which MSEFC should reply for a filed application?

MSEFC should decide the case within 90 days of receiving such application

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