A remedy when a buyer pays a micro or small supplier late

Under the MSMED Act a buyer must pay a micro or small supplier within the agreed time, and within 45 days of acceptance in any case (15 days where nothing is agreed in writing). A supplier who is paid late can claim interest and file a case with the state facilitation council. Since 15 October 2025 new cases are filed on the MSME ODR portal, not on Samadhaan.

Micro and small enterprises with a valid Udyam registration that supply goods or services

• Compound interest on the delayed amount, at three times the RBI bank rate
• A case before the state Micro and Small Enterprises Facilitation Council, filed on the MSME ODR portal
• Companies that owe small suppliers beyond 45 days must report it twice a year (Form MSME-1)
• An amendment Act (assented to on 13 August 2026) adds time limits for the councils; it starts on a date the government has yet to notify

• Udyam registration
• An accepted supply and an unpaid invoice past the due time

Try the buyer first, then file on the MSME ODR portal. The older Samadhaan portal now only carries cases filed before 15 October 2025. Take advice for a large claim.

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• ProblemGovernment schemes are hard to understand