MSEFC — MSME Delayed Payment Recovery
Facing delayed payments from your buyers?
Delayed payments can affect cash flow, working capital and the ability of a business to operate smoothly. Eligible Micro and Small Enterprises may have recourse under the Micro, Small and Medium Enterprises Development Act, 2006, including the Micro and Small Enterprises Facilitation Council (MSEFC) mechanism.
Aaryahi Consultancy assists eligible businesses with understanding the process, organising supporting documents and preparing for the applicable delayed-payment recovery procedure.
Our services include
Initial case assessment
Preliminary review of your business category, transaction details and payment dispute.
Documentation assistance
Help organising invoices, purchase orders, delivery challans, work orders, ledger statements and payment correspondence.
Udyam registration review
Guidance on relevant enterprise registration details and eligibility considerations.
Samadhaan / applicable filing guidance
Assistance in understanding the appropriate online filing process and information requirements.
Claim documentation
Support in organising outstanding payment calculations and supporting evidence.
Application follow-up support
Guidance on procedural communications, document requests and subsequent steps, within the scope of our engagement.
The law in brief
Payment period
Under Section 15 of the MSMED Act, 2006, a buyer must pay a micro or small supplier within the agreed period, which cannot exceed 45 days from acceptance. Without a written agreement, the limit is 15 days.
Statutory interest
Under Section 16, delayed amounts carry compound interest with monthly rests at three times the bank rate notified by the RBI.
Facilitation Council
Eligible references go to the Micro and Small Enterprises Facilitation Council, which first attempts conciliation and, if that fails, may take up arbitration.
MSME Samadhaan
References are filed online through the MSME Samadhaan portal of the Ministry of MSME.
This is a general summary of the Act, not legal advice. Whether it applies to your case depends on the facts and the law; we are consultants, not a law firm, and where legal representation is needed you will work with your own advocate.
Why choose Aaryahi Consultancy?
We help simplify the documentation process, identify missing information and explain the procedural steps involved in pursuing an eligible delayed-payment claim.
Who can apply?
- The MSEFC delayed-payment mechanism generally concerns eligible Micro and Small Enterprises supplying goods or rendering services to buyers, subject to statutory conditions.
- Eligibility can depend on the supplier's classification, registration status, timing of registration, transaction facts and applicable law.
- Traders and other business categories should have their eligibility specifically assessed before proceeding.
How it works
- Initial assessmentYour category, registration and the transaction details.
- DocumentsInvoices, orders, delivery proof, ledger and correspondence organised.
- Claim workingsOutstanding amount and supporting evidence prepared.
- Filing guidanceThe applicable online filing process and information required.
- Follow-upProcedural communications and document requests, within the scope of engagement.
Documents generally required
- Udyam Registration Certificate
- Purchase orders or work orders
- Tax invoices
- Delivery challans or service completion evidence
- Outstanding ledger and payment statements
- Buyer correspondence and payment reminders
- Relevant agreements and supporting records
Discuss your delayed payment case with us.
Acceptance of a claim, jurisdiction, limitation, recovery and final outcome depend on applicable law and the facts of the case. Consultancy assistance does not guarantee recovery.
Frequently asked questions
Can I file against a buyer in another state?
Under Section 18(4) of the Act, the reference generally lies with the Facilitation Council where the supplier is located. Jurisdiction depends on the facts, so we assess it first.
How long does the process take?
The Act sets 90 days for the council to decide after a reference; in practice timelines vary with the council and whether conciliation succeeds.
Does my Udyam registration date matter?
It can. The timing of registration relative to the supplies is one of the eligibility considerations we review before you proceed.
Are you lawyers?
No. We are consultants who help with assessment, documentation and procedure. Where legal representation is needed, you will work with your own advocate.
Other ways we can help
Project Finance & Bank Loan Assistance
DPR, CMA data, financial projections and bank loan application assistance.
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MSME Subsidy & Government Incentives
Eligibility guidance and documentation for applicable industrial incentives.
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Industrial Land, Licenses & Approvals
Industrial setup guidance, registrations, licenses and applicable permissions.
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DPR & Financial Projections
Project feasibility, machinery details, project cost and financial projections.
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MSME & Startup Consultancy
Business registration guidance and support for new entrepreneurs and growing businesses.
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Ready to start your industrial journey?
Tell us where your project stands. We'll tell you what it qualifies for, what's missing and what it will take.