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..    

How MSME claim is filed?

Author- admin
Date:April 2, 2023

How MSME claim is filed?

Law notes for NB Associates

MSME (Micro, Small and Medium Enterprises) claims can be filed in India by following these steps:

1. The first step is to register your business as an MSME. This can be done online at the Udyog Aadhaar Memorandum (UAM) portal or through any other registration method approved by the Ministry of MSME.

Please note:

As per the Judgement of the Hon’ble Supreme Court, the invoice date for which you are filing the MSME claim must be after your registration.

2. Once your business is registered as an MSME, you can file a claim under the MSME Development Act, 2006, for delayed payments from your buyer.

A delayed payment is defined as a payment that is due beyond the agreed-upon credit period, which is maximum 45 days from the date of delivery of goods or services.

When the agreed-upon credit period is not fixed, it is 15 days.

3. To file an MSME claim, you need to submit an application to the concerned authority along with the necessary documents such as invoices, delivery challans, purchase orders, and any other relevant documents.

4. The application can be filed online on the MSME Samadhan portal or through any other method approved by the Ministry of MSME.

5. Once the application is filed, the concerned authority will issue a notice to the buyer for payment of the outstanding amount along with interest at the rate notified by the Reserve Bank of India.

6. If the buyer fails to make the payment within the stipulated time, the MSME can approach the Micro and Small Enterprises Facilitation Council (MSEFC) for further action.

7. The MSEFC will conduct a conciliation if the buyer fails to make payment.

8. If the buyer still fails to make the payment or conciliation is unsuccessful, the matter is adjudicated through an arbitration proceeding.

It’s important to note that the process of filing an MSME claim may vary slightly depending on the state in which your business is located.