MSME Protection against Delayed Payment

Did not receive payment from buyers.

We are here to assist you

AT JUST

Get Proposal
Fill the Captcha Code 56 + = 60
REQUEST A CALL BACK
Fill the Captcha Code + 44 = 45

Governing Act
The MSMED Act, 2006 (Dealing with Delayed Payment)

Related Provision
The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions of Delayed Payment to Micro and Small Enterprise (MSEs). (Section 15- 24). State Governments to establish Micro and Small Enterprise Facilitation Council (MSEFC) for settlement of disputes on getting references/filing on Delayed payments. (Section 20 and 21)

Nature of assistance
MSEFC of the State after examining the case filed by MSE unit will issue directions to the buyer unit for payment of due amount along with interest as per the provisions under the MSMED Act 2006.

Who can apply?
Any Micro or small enterprise having valid Udyog Aadhar (UAM) can apply.

Salient Features
The buyer is liable to pay compound interest with the monthly rests to the supplier on the amount at the three times of the bank rate notified by RBI in case he does not make payment to the supplier for his supplies of goods or services within 45 days of the acceptance of the goods/service rendered. (Section 16)

State Governments to notify (i) Authority for filing Entrepreneur Memorandum (ii) Rules of MSEFC and (iii) Constitution of MSEFC.

All States/UTs have notified Authority for Filing Entrepreneur’s Memorandum, 33 States/UTs (i.e. except Arunachal Pradesh, Assam and Manipur) have Notified rules of MSEFC and all the 36 States/UTs have constituted MSEFCs, as per provisions laid down under MSMED Act 2006.

Every reference made to MSEFC shall be decided within a period of ninety days from the date of making such a reference as per provisions laid in the Act.

If the Appellant (not being the supplier) wants to file an appeal, no application for setting aside any decree or award by the MSEFC shall be entertained by any court unless the appellant (not being supplier) has deposited with it, the 75% of the award amount. (Section 19)

Implementation
The provisions under the Act are implemented by MSEFC chaired by Director of Industries of the State /UT having administrative control of the MSE units. State Government/UTs are requested to ensure that the MSE Facilitation Council hold meetings regularly and delayed payment cases are decided by the Councils within a period of 90 days as stipulated in the MSMED Act, 2006.

MSME Samadhaan- Ease of filing application under MSEFC, an Initiative from Ministry of MSME, Govt. of India
Ministry of MSME has taken an initiative for filing online application by the supplier MSE unit against the buyer of goods/services before the concerned MSEFC of his/her State/UT. These will be viewed by MSEFC Council for their actions. These will be also visible to Concerned Central Ministries, Departments, CPSEs, State Government, etc for pro-active actions.

Do you have any queries?
Contact us on customer.care@mindsync.co.in

This information is in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Mind Sync does not accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any information provided herein. On any specific matter, reference should be made to the appropriate advisor.

BASIC PACKAGE
Rs.12499
  • Package Includes
  • MSME Delayed payment recovery case filing when the recovery amount is Rs.1 lakh or less
  • Buyer will file appeal
STANDARD PACKAGE
5499
  • Package Includes
  • MSME Delayed payment recovery case filing when the recovery amount is more than Rs.1 lakh
  • Buyer does not appeal
PREMIUM PACKAGE
Rs.12999
  • Package Includes
  • MSME Delayed payment recovery case filing when the recovery amount is more than Rs.1 lakh
  • Buyer will file appeal

(Prices are exclusive of GST)

Menu