The Indian government has taken so many initiative to protect the payments of registered Micro, Small or Medium Enterprises (MSMEs)

A company or any other entity who have registered themselves under MSME and facing problems to recover long pending dues from their customers may approach the MSME department to take action against them.

Following process shall be followed by such MSMEs entity:-

1. Register your company/LLP/Partnership etc. as an MSME and obtain a MSME certificate [Udyog Aadhaar Number (UAN)].

2. Keep record of all formal purchase orders from customers and delivery proofs for all orders.

3. On all your invoices, mention, “your entity name and UAN” along with a note that “Delayed payments beyond 45 days attracts interest at a rate three times of the bank rate notified by RBI, compounded with Monthly interest”. 

4. If any customer delays your payments unreasonably beyond 45 days, inform them that you would be approaching the MSME Samadhaan for your pending payments if they do not make the payment in X days.

5. If they still do not release payment, file a complaint at www.samadhaan.msme.gov.in

6. The customer would receive a notice from Micro and Small Enterprise Facilitation Council (MSEFC) asking them to respond with compliance in specified time period (usually 15~30 days)

IMPORTANT FAQs:-

Q.1 What is MSME Samadhaan Portal ?

Ans : MSME Samadhaan is a Portal created by Office of DC (MSME), Ministry of Micro, Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their applications online regarding delayed payments.

Q.2 Do Ministry of MSME take action on applications filed on MSME Samadhaan Portal?

 Ans : No, MSME SAMADHAAN online portal is developed by Ministry of MSME only to facilitate MSEs filing of their applications regarding delayed payments online. The application once filed is forwarded automatically online to the concerned Micro and Small Enterprise Facilitation Council (MSEFC) established by the State/UTs as per the provisions of MSMED-Act 2006. Action on the applications regarding delayed payment is taken by the concerned MSEFC only.

Q.3 Is filing of Udyog Aadhaar Memorandum (UAM) Mandatory to file applications on MSME Samadhaan Portal?

Ans: Yes, UAM is mandatory to file applications online on MSME Samadhaan Portal.

Q.4 How can I get Udyog Aadhaar Memorandum (UAM) Number ?

Ans: Registration for Udyog Aadhaar can be done online on the official website of Ministry of MSME free of cost at following address: https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx

Q.5 Is it mandatory to file Delayed Payment Applications online on MSME Samadhaan Portal only?

Ans: No. MSME Samadhaan Portal has been created only to facilitate online applications regarding delayed payments. Physical applications can also be filed at the concerned MSEFC.

Q.6 Who can convert the application into Regular Reference Petition/claim case?

Ans: The applications are converted into case by the concerned MSEFC.

Q.7 If there is no action on an application filed by MSEs, whom to contact?

Ans: After submission, the application is automatically forwarded online to concerned MSEFC. Therefore, concerned MSEFC is to be contacted after filing the application online on MSME Samadhaan Portal. The contact address of concerned MSEFC is mentioned on the acknowledgement sent on the registered email of the applicant.

Q.8 Is work order compulsory to file application on MSME Samadhaan Portal?

Ans : Yes, work order is compulsory. In case purchase order is oral an affidavit to that effect is to be submitted.

Q.9 How to upload multiple invoices?

Ans: Multiple invoices can be combined into single PDF and can be uploaded. The affidavit of oral purchase order is to be included in single PDF.

Q.10 On which email OTP is sent?

Ans: The OTP is sent to the registered email ID in Udyog Aadhaar.

Q.11 What is the time limit for MSEFC to decide the Case?

Ans: 90 days from making such reference to MSEFC.

We hope this article will help you to get back your hard earned money.

Disclaimer– This Article is for the information and shall not used as any professional advice. 

Written and Compiled By-

CS Akash Goel (Senior Secretarial Consultant at Startup Movers; Owner at Akash Goel & Associates; [email protected]; [email protected]; +91-995-367-2781)

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Qualification: CS
Company: Akash Goel & Associates; www.startup-movers.com
Location: New Delhi, New Delhi, IN
Member Since: 09 May 2019 | Total Posts: 5
A qualified and experienced Company Secretary having practical work exposure in the area of Company Law, FEMA, Intellectual Property. A problem solver who has worked with various startups across India and always love to take challenges of working in rapidly changing environment with the help of know View Full Profile

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5 Comments

  1. Devendra rahate says:

    Dear sir,
    I have my udyam ragistration from 4/6/2021, before that I had udyog aadhar certificate from 20/5/2019. Some of my payment from my client is pending from 2008- 2009. Can I file a compliment now. Will it be proceded.

    Regards
    DEVENDRA RAHATE
    ESHWAR ENGINEERING
    9890317734

  2. hariom gupta says:

    Dear Sir,
    What was the next process when MSME applicaton converted in to case after the lapse of stipulated 15 days.
    What will applicant do at this state.

  3. kalyan mukherjee says:

    i have UAM number from 2019. i have applied in delayed payment for the invoices of 2009.buyer rejects my claim as i had no SSI certificate though my UAM indicates that date of commencement of unit is 1.1.1989
    how can i convince buyer

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