Guidance Note: MSME Samadhaan – Resolving Delayed Payments Efficiently

MSME Samadhaan is a vital online platform introduced by the Government of India in 2017 to address and resolve issues related to delayed payments for Micro and Small Enterprises (MSEs). It offers a streamlined process for MSEs to file complaints against buyers who delay payments for goods or services. Complaints are reviewed and handled by the Micro and Small Enterprises Facilitation Council (MSEFC), ensuring a systematic approach to dispute resolution.

Provisions Governing Delayed Payments Under MSME Act, 2006

The Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act, 2006) includes specific provisions for managing delayed payments:

1. Payment Deadlines with Agreements:

   • Contractual Agreements: When there is a formal agreement between the MSE and the buyer, payment should be made within the period specified in the agreement. However, this period cannot exceed 45 days from the date of receipt of goods or services.

2. Payment Deadlines without Agreements:

   • Default Rule: If there is no formal agreement, the buyer must make the payment within 15 days from the date of acceptance of goods or services.

3. Interest on Delayed Payments:

   • Penalty for Delay: If the payment is delayed beyond the prescribed period, the buyer is liable to pay interest on the overdue amount. This interest is calculated at three times the bank rate notified by the Reserve Bank of India (RBI), providing a significant financial deterrent against delays.

4. Filing Complaints:

   • Right to Redressal: MSEs have the right to file a complaint with the MSEFC for delayed payments. This provides a legal recourse to address issues and seek compensation for delayed payments.

Eligibility Criteria for MSME Samadhaan

To utilize the MSME Samadhaan portal, the following criteria must be met:

1. Enterprise Classification:

   • Micro and Small Enterprises: Only enterprises classified as Micro or Small are eligible. Medium Enterprises are not covered under this platform.

2. Valid Registration:

   • Udyog Aadhaar/Udyam Registration: The enterprise must have a valid Udyog Aadhaar or Udyam Registration Number. This registration serves as proof of the enterprise's status and is necessary for filing a complaint.

Step-by-Step Process for Filing a Complaint

Filing a complaint through the MSME Samadhaan portal involves several steps:

1. Access the MSME Samadhaan Portal:

   • Visit the official portal at https://samadhaan.msme.gov.in.

2. Initiate the Filing Process:

   • Click on ‘Case Filing for Entrepreneur/MSE Units’.

3. Select Registration Type:

   • Choose between Udyog Aadhaar Number or Udyam Registration Number.

4. Enter Registration Details:

   • Input the registration number and registered mobile number. This information is used to validate the enterprise’s eligibility.

5. Authenticate via OTP:

   • An OTP (One-Time Password) will be sent to the registered mobile number or email. Enter this OTP to authenticate and proceed.

6. Fill in the Complaint Details:

   • Complete the complaint form with details about the delayed payment. Attach necessary documents, such as:
     • Invoice Copies: Proof of the transaction.
     • Purchase Orders: Details of the original agreement.
     • Proof of Delivery: Confirmation of goods/services provided.

7. Submit the Application:

   • Review all details and documents, then submit the application for MSEFC review.

Procedure Post-Filing of a Complaint

Once a complaint is submitted, the MSEFC follows a structured process:

1. Initial Review:

   • The MSEFC reviews the application within 15 days. This involves verifying the details and documents submitted.

2. Notification:

   • Both the applicant (MSE) and the respondent (buyer) will receive notifications via email and SMS about the status of the application.

3. Mutual Settlement Opportunity:

   • Before converting the application into a formal case, the MSEFC provides an opportunity for a mutual settlement. This allows both parties to resolve the issue amicably without formal adjudication.

4. Case Conversion:

   • If mutual settlement is not achieved, the MSEFC will either:
     • Approve the Application: Convert it into a formal case.
     • Reject the Application: Inform the applicant and respondent accordingly.
   • In case of approval, both parties will receive further notifications about case hearing dates and status updates.

5. Case Management:

   • The MSEFC will continuously update the case status on the portal, allowing the MSE to track the progress of their complaint.

Checking the Status of Your Complaint

To check the status of a complaint:

1. Visit the MSME Samadhaan Portal: https://samadhaan.msme.gov.in

2. Click on ‘Check Case Status’.

3. Enter Registration Details:

   • Provide your Udyog Aadhaar Number or Udyam Registration Number and registered mobile number.

4. Login:

   • Click Login to view the status of your complaint.

Frequently Asked Questions (FAQs)

1. What is MSME Samadhaan?
   MSME Samadhaan is an online platform designed to help Micro and Small Enterprises file complaints about delayed payments for goods or services.

2. What is the MSME 45-day rule?
   The 45-day rule stipulates that buyers must make payments within a maximum of 45 days from the date of acceptance of goods or services, as per the MSME Act, 2006.

3. How do I file a complaint in MSME Samadhaan?
   Complaints can be filed through the Case Filing section on the MSME Samadhaan portal by following the steps outlined earlier.

4. How can I check the status of my complaint?
   Use the ‘Check Case Status’ feature on the portal to track your complaint by entering your registration details.

5. What is the process for filling the Samadhaan form?
   Fill out the Samadhaan form on the portal by selecting the appropriate filing option, providing necessary details, and attaching relevant documents.

6. Are Udyam and MSME the same?
   Udyam is the online registration system for MSMEs. While Udyam is a method of registration, MSMEs refer to the enterprises classified under micro, small, or medium categories.

7. How do I complain in MSME for non-payment?
   Complaints for non-payment can be filed using the MSME Samadhaan portal under the provisions of Section 15 of the MSME Act, which mandates timely payment.

8. What is the MSME payment law?
   The MSME payment law requires buyers to pay within 45 days from the acceptance date of goods or services, as stipulated by the MSME Act, 2006.

9. What is the turnover limit for MSME?
   The turnover limits are:

   • Micro Enterprise: Up to INR 5 Crore.
   • Small Enterprise: Up to INR 50 Crore.
   • Medium Enterprise: Up to INR 250 Crore.

Conclusion

MSME Samadhaan is a powerful tool designed to protect the interests of Micro and Small Enterprises by facilitating prompt resolution of payment disputes. By adhering to the provisions of the MSME Act, and utilizing this platform effectively, MSEs can ensure better cash flow management and mitigate the financial impacts of delayed payments. This structured approach not only fosters a fair business environment but also strengthens the overall economic fabric by supporting the growth and sustainability of smaller enterprises.