Recover delayed payments using your rights as a registered MSME
MSME payment recovery for micro and small enterprises under the MSMED Act, including MSME Samadhaan claims, with advocates in the Vibence partner network.
- Fixed, itemised price
- Partner CA / CS / advocate
- Free Ambition Pro for 12 months
MSME Delayed Payment Recovery at a glance
- Professional fee
- Quote on request, confirmed before you pay
- Typical timeline
- Filing the claim typically takes a few days once documents are ready, while the Council's process can take several months and depends on its workload and the buyer's response.
- Who handles it
- An independent advocate from the Vibence partner network
- Documents
- Udyam registration certificate (obtained before the supply), Purchase orders or written agreement with the buyer, Invoices raised and proof of delivery or acceptance and more
- Included free
- Free Ambition Pro for 12 months and domains at cost
Last reviewed October 2026
Late payments can choke the cash flow of a small business. The Micro, Small and Medium Enterprises Development Act gives registered micro and small suppliers specific protection. Buyers must pay within the period agreed in writing, which cannot exceed 45 days from acceptance of the goods or services. Where nothing is agreed, a shorter default period applies. If the buyer pays late, the law entitles the supplier to compound interest at a rate linked to the RBI bank rate.
A supplier with Udyam registration can file a delayed payment claim online through the MSME Samadhaan portal. The claim goes to the Micro and Small Enterprises Facilitation Council of the relevant state, which first attempts conciliation and may then arbitrate. Vibence connects you with an independent advocate from our partner network who can prepare and pursue the claim. Vibence is not a law firm, and no outcome is guaranteed.
Legal services are provided by independent advocates in the Vibence partner network. Vibence is not a law firm and no outcome is guaranteed.
Who this is for
- Micro and small enterprises with Udyam registration
- Suppliers whose invoices are unpaid beyond the agreed period
- Manufacturers and service providers selling to larger companies
- MSMEs that want to claim statutory interest on late payments
Statutory interest
The law allows compound interest on payments delayed beyond the permitted period.
Dedicated forum
Claims go to the state Facilitation Council rather than a regular civil court.
Conciliation first
The Council tries to settle the dispute before moving to arbitration.
Online filing
Claims can be filed through the MSME Samadhaan portal.
What's included
- Review of Udyam registration, invoices and payment history
- Calculation of principal and interest claimed
- Drafting of a demand notice to the buyer, if useful
- Preparation and filing of the claim on MSME Samadhaan
- Representation by an advocate before the Facilitation Council
- Advice on settlement offers and next steps
We confirm an itemised fixed price for your exact case before any payment.
Get my quote- Free Ambition Pro for 12 months
- Domains at cost
Filing a delayed payment claim on MSME Samadhaan does not usually attract a government fee, though later arbitration or court stages may involve costs, and GST applies to the professional fee.
Documents you'll need
- Udyam registration certificate (obtained before the supply)
- Purchase orders or written agreement with the buyer
- Invoices raised and proof of delivery or acceptance
- Ledger or statement of account showing amounts outstanding
- Correspondence and reminders sent to the buyer
- Your identity and address proof
Filing the claim typically takes a few days once documents are ready, while the Council's process can take several months and depends on its workload and the buyer's response.
Filing a delayed payment claim on MSME Samadhaan does not usually attract a government fee, though later arbitration or court stages may involve costs, and GST applies to the professional fee.
Qualified professionals from the Vibence partner network, with certification wherever the law requires it.
The process
- Eligibility checkAn advocate confirms your Udyam status and that the dues qualify under the Act.
- Claim preparationPrincipal and interest are calculated and supporting documents organised.
- File on SamadhaanThe claim is filed online and referred to the state Facilitation Council.
- ConciliationThe Council attempts to settle the dispute between you and the buyer.
- ArbitrationIf conciliation fails, the Council may take up arbitration and issue an award.
MSME Delayed Payment Recovery: FAQs
Is Vibence a law firm?
No. Vibence is not a law firm and does not give legal opinions itself. Legal services listed on this page are provided by independent advocates in the Vibence partner network. Vibence helps you find a suitable advocate, coordinates documents and keeps you updated. Advice and representation come from the advocate. No outcome in any legal matter is guaranteed.
Who can file a claim under the MSME delayed payment provisions?
Micro and small enterprises that hold Udyam registration can file a delayed payment claim against a buyer. Medium enterprises are generally not covered by these provisions. Registration should ideally exist at the time of supply, since claims for supplies made before registration may be questioned. An advocate can review whether your dues qualify.
What is the 45-day rule for MSME payments?
Under the MSMED Act, a buyer must pay a micro or small supplier within the period agreed in writing, and that period cannot be more than 45 days from the day the goods or services are accepted or deemed accepted. If there is no written agreement, payment is due within 15 days. Late payment attracts compound interest at three times the RBI bank rate.
What is MSME Samadhaan?
MSME Samadhaan is the government's online portal for micro and small enterprises to file delayed payment applications. Once filed, the application goes to the Micro and Small Enterprises Facilitation Council of the relevant state. The Council attempts conciliation and, if that fails, may arbitrate or refer the dispute for arbitration. The portal also shows the status of your application.
Can the buyer challenge the Council's award?
A buyer can challenge an arbitration award through the court process allowed by law. To do so, the buyer must first deposit a large share of the amount awarded, as required by the MSMED Act. This requirement discourages delays and is one reason suppliers use the Council route. The court decides any challenge, so no final outcome can be guaranteed.
Related services
MSME Udyam Registration
Get MSME Udyam registration with help from qualified professionals. Registration is free on the government portal; Vibence charges only for assistance.
Legal Notice Drafting
Legal notice drafting in India for unpaid dues, contract breaches and disputes, prepared and sent by an advocate from the Vibence partner network. From ₹699.
Cheque Bounce Case
Cheque bounce case support under Section 138 of the Negotiable Instruments Act, from statutory notice to complaint, by advocates in the Vibence network.