INTRODUCTION · MSME CLAIM ASSISTANCE

MSME Delayed Payment Claims

Helping MSMEs pursue their rightful dues.

Legal assistance to MSMEs seeking recovery of delayed payments and outstanding dues through appropriate statutory, dispute-resolution and legal mechanisms.

UNDERSTANDING YOUR RIGHTS

Turning Delayed Payments Into a Clearer Path Forward

Delayed payments can place significant financial pressure on micro and small enterprises. Outstanding invoices, contractual disputes and prolonged payment delays can affect working capital and business operations. We help review the transaction, assess the supporting records and identify appropriate legal or statutory routes for pursuing eligible claims.

Review

Examine invoices, purchase orders, contractual terms and available records relating to the outstanding payment.

Assess

Review enterprise classification, registration, payment timelines and the potential applicability of statutory remedies.

Pursue

Identify suitable recovery steps, including appropriate representations, statutory proceedings or other legal remedies.

AREAS OF ASSISTANCE

What MSME Payment Issues Can We Review?

Each matter is assessed on its documents, transaction history, applicable law and the circumstances of the payment delay.

Unpaid Invoices

Outstanding invoices for goods supplied or services rendered.

Delayed Contract Payments

Payments delayed beyond the applicable contractual or statutory timelines.

Buyer Payment Defaults

Review of non-payment or payment disputes involving buyers and business counterparties.

Delayed Payment Interest

Assessment of potential interest claims under applicable statutory provisions and transaction records.

MSEFC Proceedings

Assistance in assessing a potential reference to the Micro and Small Enterprises Facilitation Council, where eligible.

Disputed Commercial Dues

Review of contractual disputes, payment correspondence and potential recovery options.

HOW WE ASSIST

A Structured Approach to MSME Payment Recovery

A clear assessment of the transaction and supporting evidence helps identify the appropriate next steps.

Understand the Transaction

Review the supply arrangement, purchase orders, invoices and agreed payment terms.

Verify Eligibility

Examine relevant enterprise registration, transaction dates and the applicability of the MSME legal framework.

Assess Legal Options

Consider notices, representations, statutory remedies and other available dispute-resolution routes.

Prepare & Pursue

Organise the supporting records and pursue the appropriate recovery process based on the facts and applicable law.

DOCUMENTS THAT MAY HELP

What Documents Should You Keep Ready?

The documents required depend on the transaction, the nature of the claim and the remedy being considered. The following records may help with an initial review:

✓Udyam registration or other enterprise registration documents
✓Purchase orders, contracts and terms of supply
✓Invoices and delivery or service records
✓Proof of acceptance of goods or services
✓Ledger statements and payment history
✓Correspondence, reminders and any prior notices

COMMON QUESTIONS

Frequently Asked Questions

Important information about MSME classification, delayed payments and potential recovery options.

1. Who qualifies as an MSME? +

Classification depends on the investment and turnover criteria notified under the Micro, Small and Medium Enterprises Development Act, 2006, and on registration status. We review your enterprise's classification and documents at the outset.

2. Is there a statutory time limit for payment? +

Under Section 15 of the Micro, Small and Medium Enterprises Development Act, 2006, payment to an eligible micro or small enterprise supplier is generally required within the agreed written period, which cannot exceed 45 days from acceptance or deemed acceptance. Where there is no written agreement, the Act provides a separate default timeline. The applicable position should be assessed against the transaction facts.

3. Is interest payable on delayed payments? +

Section 16 of the Act provides for compound interest with monthly rests at three times the bank rate notified by the Reserve Bank of India in qualifying cases. Applicability depends on the statutory requirements, the transaction and the facts of the matter.

4. Do I have to go to court? +

Not necessarily. Depending on eligibility and the facts, available routes may include a reference to the Micro and Small Enterprises Facilitation Council, conciliation, arbitration or other appropriate proceedings. The suitable route depends on the nature of the claim and applicable law.

BEGIN THE CONVERSATION

Have an MSME Payment Claim to Discuss?

Share a brief outline of your outstanding dues to discuss the documents available and potential next steps for your claim.

Discuss Your Claim →

All enquiries are treated with appropriate confidentiality.