MSME Samadhaan Portal: Filing Delayed Payment Complaints
The MSME Samadhaan Portal is the online grievance mechanism launched by the Ministry of Micro, Small and Medium Enterprises to let suppliers file complaints against buyers who delay payment beyond the statutory period. It operationalises the protection already available under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, giving MSMEs a direct route to recovery without first approaching a civil court.
The Legal Basis
Under the MSMED Act, a buyer must pay within 15 days where no written agreement exists, or within 45 days where a written agreement specifies that period. Payment beyond this window is a delayed payment, and the buyer becomes liable for compound interest at three times the RBI-notified bank rate, compounded monthly from the due date.
Who Can File a Complaint
Eligibility is limited to suppliers holding valid Udyam Registration who qualify as a Micro or Small Enterprise, have actually supplied the goods or services in question, and have payments outstanding beyond 45 days. Medium enterprises fall outside this protection.
Documents to Keep Ready
|
Document |
Purpose |
|---|---|
|
Udyam Registration Number |
Establishes eligibility |
|
Invoice copies |
Evidences the transaction and due amount |
|
Purchase/work orders |
Confirms the buyer's commitment |
|
Delivery proof (challans, receipts) |
Establishes the acceptance date that triggers the payment clock |
|
Buyer details (name, address, GSTIN) |
Identifies the respondent |
|
Communication records |
Supports the timeline of follow-up and default |
Filing Process
|
Stage |
What It Involves |
|---|---|
|
Registration |
Log in to the portal using the Udyam Registration Number |
|
Enterprise details |
Business name, address, and enterprise category |
|
Buyer details |
Name, address, contact details, and GSTIN of the defaulting buyer |
|
Transaction details |
Invoice number and date, amount due, date of supply, and payment due date |
|
Document upload |
Invoices, agreements, and communication proof |
|
Submission |
Review and submit; an acknowledgment number is issued for tracking |
What Happens After Filing
Once submitted, the complaint is forwarded to the relevant Micro and Small Enterprises Facilitation Council (MSEFC), which first attempts conciliation between the parties. If conciliation fails, the matter proceeds to arbitration, and the Council's final order is enforceable in the same manner as a court decree. The Act envisages resolution within 90 days of reference, though actual timelines vary by case and by state council.
Can a Court Case Be Filed Alongside
Once a complaint is referred to the MSEFC, the dispute is generally required to run through conciliation and arbitration before separate civil proceedings become relevant — the Act is designed as a specialised, self-contained mechanism rather than a parallel track to litigation.
Where Complaints Commonly Fail
Complaints most often falter on incomplete or inconsistent documentation, incorrect buyer details, filing before securing Udyam Registration, missing proof of delivery, or inaccurate payment figures — errors that are avoidable with careful preparation rather than defects in the underlying claim.
Consequences for the Defaulting Buyer
A buyer found in default remains liable for compound interest on the outstanding amount, is subject to a binding MSEFC order, and — where the buyer is a company — must disclose the outstanding dues in its financial statements. Reputational exposure with prospective MSME vendors follows naturally from this disclosure requirement.
Frequently Asked Questions
Is there a fee for filing a complaint on the Samadhaan Portal? No. There is no government fee for filing.
Can Medium enterprises use this portal? No. Only Micro and Small enterprises are eligible.
How long does resolution typically take? The Act targets resolution within 90 days from the date of reference, though actual timelines depend on the specific MSEFC and case complexity.
Is legal representation mandatory? No, it is not mandatory, though professional assistance can strengthen documentation and case presentation.
