How do I recover my MSME payment?

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Author- admin
Date:March 30, 2023

How do I recover my MSME payment?

MSME Law notes by NB Associates

To recover your MSME payment, you can follow these steps

Send a formal reminder:

If a buyer has not made the payment within the agreed-upon period, send a formal reminder to the buyer.

The reminder should include the invoice number, date of delivery, and the amount due, and request the buyer to make the payment

Send a legal notice:

If the buyer does not respond to the reminder, send a legal notice to the buyer.

A legal notice is a formal communication that highlights the details of the outstanding payment and the consequences of non-payment.

File a complaint under MSME Samadhaan:

If sending reminders and legal notices do not yield any results, file a complaint on the MSME Samadhaan portal.

Provide all the necessary details, including invoices, delivery challans, purchase orders, and any other relevant documents.

Approach to MSME Facilitation Council

If the complaint filed on MSME Samadhaan is not resolved, you can approach under MSMED Act 2006 to concerned MSME Facilitation Council  by physically filing the complaint.

Under this act, you can file a case in the Micro and Small Enterprises Facilitation Council (MSEFC).

The council will then try to settle the dispute through conciliation.

If conciliation fails, the MSME Facilitation Council shall refer matter to arbitration for adjudication of disputes.

Filing a commercial suit for recovery

If your invoice date is prior to your MSME registration, you may file a commercial suit for recovery.  

A civil suit is a legal proceeding in which you can claim your outstanding payment along with interest and other damages..

It’s important to keep records of all communication related to the outstanding payment and maintain copies of all relevant documents for future reference