MSME Award Appeal here we mean and discuss Appeal against the order, decree or Award arising out of the statutory arbitration proceeding under MSME Act. There have been challenges to this provision in courts, where the contentions were raised that this provision is not mandatory and there can be deviation by the Appellate court. Thus, the Supreme Court has made it clear that the provision of section 19 of the MSME Act is mandatory in nature..    

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    MSME Case Filing – Step-by-Step Procedure

    Law Article by NB Associates

    MSME Case Filing

    Micro and small enterprises (MSEs) can file MSME case to recover their dues or outstanding by using the provisions of sections 15 to 18 of the MSME Act.

    These provisions are an effective solution for the MSEs dues recovery.

    Here we are going to discuss the step-by-step procedure for MSME case filing.

    So how can one go for MSME case filing?

    Step 1. MSME case filing through MSME Samadhan Portal

    MSEs can file cases through MSME Samadhaan portal.

    MSME Samadhaan portal was launched by the Government of India in 2017. This portal provides a platform through which an MSME case can be filed against the buyer for recovery of MSEs dues.

    Access the MSME Samadhan Portal by following link:

    Required Documents for MSME case filing

    At the time of MSME case filing through MSME Samadhan portal, MSEs are required to upload the relevant documents which is contract or work order and invoices.

    Once the case is filed online, the MSE will receive an acknowledgement of receipt and a unique case number, which can be used to track the progress of the case.

    Eligibility for MSME case filing

    The complainant or claimant should be a micro or small enterprise (MSE) as per the definition provided in the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.

    The complainant or claimant should also have a valid Udyog Aadhaar Number (UAN), which is a 12-digit identification number provided to MSEs by the Ministry of Micro, Small and Medium Enterprises (MSMEs)

    Read More – Who is eligible for MSME Samadhan?

    What happens after MSME case filing

    After MSME case filing through MSME Samadhan portal, the MSME complaint is forwarded to the concerned buyer. The buyer is given 15 days to respond to the complaint.

    What happens if buyer does not respond or pay after MSME case filing

    If a buyer does not respond or pay after a case has been filed by an MSE on the MSME Samadhan portal, the case is forwarded to the respective MSME facilitation council.

    MSME facilitation council then convert this complaint into an MSME case.

    MSME facilitation council then start proceedings under section 18(2), which is a mandatory conciliation proceeding between the parties. If conciliation fails MSME facilitation council refers the matter to statutory arbitration.

    Tracking of MSME case filing status

    MSME Samadhan portal has a dashboard that enables MSMEs to track the status of their complaints online. The portal also provides information related to the various schemes and policies of the Government related to MSMEs

    Thus, a complainant can always track the MSME case filing status.

    You can track your MSME case filing status by following links :

    Tracking your case status here :

    Whether prior legal notice is required for MSME case filing

    MSEs can issue a legal notice to the buyer demanding the payment of dues.

    A legal notice serves as a warning to the buyer. It may prompt them to make the payment to avoid litigation.

    However, it is not mandatory by law to issue a legal notice.

    Step 2 . Conciliation proceeding under section 18(2)

    MSME facilitation council converts the complaint into an MSME case, when buyer does not pay or respond to the notice issued after complaint filing.

    Once the case is converted into an MSME case, Section 18 (2) provides for conciliation between the parties.

    The council can itself conduct conciliation proceedings or it may seek the assistance of an institution by making a reference to such an institution or centre for conducting conciliation.

    The provisions of sections 65 to 81 of the Arbitration & Conciliation Act, 1996 apply to such a dispute as if conciliation was initiated under part III of the Arbitration & Conciliation Act, 1996.

    Step 3 . Arbitration proceeding under section 18(3)

    Where the conciliation under section 18(2) is not successful or stands terminated without any settlement between the parties, a reference to the arbitration is made by  MSME facilitation council for adjudication of the dispute as per law.

    The council can itself take the dispute for arbitration or refer the dispute to any institution or centre providing alternate dispute resolution services for such arbitration.

    The provisions of the Arbitration & Conciliation Act, 1996 apply to such arbitration proceeding or disputes.

    Appeal against decree, award or order under section 19

    Section 19 of the MSME Act, provides for an application for setting aside a decree, award or order arising out of an arbitration proceeding can be filed.

    The provisions of the Arbitration and Conciliation act, 1996 are applicable to an alternate dispute resolution/arbitration initiated under this Act.

    Hence an objection / Application for setting aside the decree, or award order can be filed as per provisions of section 34 of Arbitration and Conciliation Act, 1996 read with section 19 of MSME act.

    Arbitral decree, award or orderExecution

    The degree, award or order can be executed as per the provisions of section 36 of the Arbitration and Conciliation Act, 1996.

    Certain states have formulated their own rule under which the amount decree can be recovered as arrears of land revenue e.g. Madhya Pradesh Micro and Small Enterprises Facilitation Council Rules, 2006 (Rule 5)

    MSME case filing provisions a significant step

    MSME case filing provisions as provided under the MSME Act, and Govt of India initiative in the form of MSME Samadhan portal is a significant step towards creating a more business-friendly environment and improving the ease of doing business in the country.

    The provisions of filing case through MSME Samadhan reduces the need for physical visits to government offices, saves time and resources, and provides greater transparency and accountability in the MSME dispute resolution process.


    MSME case filing process is a significant step. It has made the recovery process easy for MSME.

    MSME case filing through the MSME Samadhan portal awareness is gaining moment. However more and more awareness is to be done.

    There are also some areas where improvement is to be made by both State as well as Central Government.

    Hopefully, the Government is taking care that more and more improvement initiatives taken.  


    More Law Articles

    Whether mere notice of conciliation by the MSME facilitation council wipe out the legal defence of limitation?

    Whether the condition of a 75% deposit under sec 19 MSME act is mandatory?

    Can a deposit of 75% u/s 19 of the MSME Act be in Instalments?

    Can the Bank guarantee be accepted as 75% pre-deposit u/s 19 MSME Act?

    Law articles on MSME claim – Read more


    MSME Frequently Asked Questions

    What is MSME? 

    What are the benefits of MSME registration? 

    What is the MSME Facilitation council? 

    How does MSME Facilitation Council work?

    Where can an MSME claim be filed? Jurisdictions

    Why is filing of claim before the MSME Facilitation Council beneficial?

    Whether Limitation Act applies to claims under MSME Act?

    MSME Frequently Asked Questions – Read more


    Read : MSME case Study

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