Date:March 29, 2023
MSME Online Case Filing – the process is a significant step
Law Article by NB Associates
Micro and small enterprises (MSEs) can 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 debt recovery.
For debt recovery, MSEs can start with MSME online case filing.
MSME online case filing refers to the process of filing a case related to MSMEs through online channel.
It provides a convenient and efficient way for MSEs to file their grievances and seek redressal of their MSME complaint.
MSEs can file online case through MSME Samadhaan portal.
The MSME Samadhaan portal was launched by the Government of India to facilitate the settlement of disputes related to payment of dues by MSEs.
MSEs can file a case in the portal and the concerned authority takes appropriate action to resolve the dispute
MSME Samadhaan portal provide a quick and easy platform for resolving grievances related to the delayed payment of dues by buyers to MSMEs. The portal is designed to empower the MSMEs and ensure the timely settlement of their disputes.
MSME Samadhan portal enables MSEs to file their complaints online against buyers who have failed to make payments for the goods or services provided by the MSEs.
The portal allows MSMEs to file complaints with necessary documents such as invoices, work orders, contracts, etc.
After MSME online case filing through MSME Samadhaan portal, the complaint is then forwarded to the concerned buyer. The buyer is given 15 days to respond to the complaint, and the concerned authorities take necessary actions to recover the amount due to the MSME.
MSME Samadhan portal has a dashboard that enables the 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
Overall, the MSME Samadhan portal is a useful initiative by the Government of India to provide MSMEs with an easy and hassle-free mechanism to resolve their grievances related to delayed payments by buyer.
MSMEs may also be required to upload relevant documents, such as contracts, work order and invoices.
Once the case is filed online, the MSME will receive an acknowledgement of receipt and a unique case number, which can be used to track the progress of the case.
If a buyer does not pay after a case has been filed by an MSME on the MSME Samadhan portal, the case is forwarded to the respective MSME facilitation council.
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.
MSEs can issue a legal notice to the debtor demanding the payment of outstanding dues.
A legal notice serves as a warning to the debtor and may prompt them to make the payment to avoid further legal action
However, it is not mandatory by law to issue a legal notice.
The supplier 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 supplier 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 are eligible for MSME Samadhan?
MSME Online case filing is a significant step towards creating a more business-friendly environment and improving the ease of doing business in the country.
It 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 Online Case Filing has helped MSMEs in several ways, some of which are :
Convenience: Online case filing has made it easy and convenient for MSEs to file their complaints and seek redressal for their grievances related to delayed payments or other issues. They can file their complaints from anywhere at any time, without the need to physically visit the concerned authorities.
Time-saving: Online case filing has reduced the time taken for filing complaints and seeking redressal. The process is streamlined, and MSEs receive an acknowledgement of receipt and a unique case number, which can be used to track the progress of the case.
Transparency: Online case filing has increased transparency and accountability in the dispute resolution process. MSEs can track the progress of their cases online and receive updates on the actions taken by the concerned authorities.
Efficiency: Online case filing has improved the efficiency of the dispute resolution process. The concerned authorities can quickly access the complaint and take appropriate actions to resolve the issue, leading to faster resolution of dispute.
Reduced costs: Online case filing has reduced the costs associated with filing complaints and seeking redressal. MSEs do not need to spend money on travel or legal fees, and the process is faster and more efficient, reducing the overall cost of dispute resolution.
Overall, MSME Online Case Filing has helped MSEs to resolve their disputes related to delayed payments or other issues in a timely and efficient manner, thus promoting a business-friendly environment and improving the ease of doing business in the country.
MSME online case filing process is a significant step. It has made the recovery process easy for MSME.
MSME online case filing awareness is gaining moment. However more and more awareness is to be done.
There is also some area where improvement is to be made by Government.
Law is always evolving and hopefully, Government is taking care that more and more improvement initiatives taken.
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Read : MSME case Study