Your rights as an MSME supplier
| Right | What it means for you |
|---|---|
| Section 15, MSMED Act | The buyer must pay by the agreed date, never later than 45 days from acceptance; with no written agreement, within 15 days |
| Section 16 | Compound interest with monthly rests at three times the RBI bank rate on the delayed amount |
| Section 18 | Reference to the Andhra Pradesh Micro and Small Enterprises Facilitation Council: conciliation, then arbitration, aiming to decide within 90 days |
| Section 43B(h), Income-tax Act | The buyer loses the tax deduction for the year if it pays you late |
| Section 22, MSMED Act | Companies must disclose unpaid MSME dues in their accounts |
Register on Udyam before you supply, not after the dispute. Courts have held that the benefits apply to supplies made after registration. Traders are generally outside the delayed-payment provisions.
Recovering B2B dues in Guntur: what is specific here
Guntur runs Asia’s largest chilli market and a large cotton and tobacco trade, where commission agents and traders extend credit to buyers across India. Commodity dues are high-value and often cheque-based; Section 138 and a prompt legal notice with the sale documents are the usual recovery path.
Main industries: chilli and spice trading, cotton and tobacco, agri-processing, construction materials and education.
Courts: Judicial Magistrate courts, Guntur, for Section 138; District Court, Guntur, and its Commercial Court for recovery suits.
MSME claims: Udyam-registered micro and small suppliers in Guntur file on MSME Samadhaan, heard by the Andhra Pradesh Micro and Small Enterprises Facilitation Council (Commissionerate of Industries, Government of Andhra Pradesh, Vijayawada/Amaravati). The Council sits where the supplier is, so a Guntur supplier can pursue a buyer in another state from home.
How FundRaksha files MSME Samadhaan for you
- We check your Udyam status, the supply dates and the acceptance to confirm eligibility.
- Your advocate sends a legal notice citing Sections 15 and 16, with the interest computed to date.
- If the buyer does not settle, we file the application on samadhaan.msme.gov.in with the invoices, proof of delivery and the ledger.
- The Andhra Pradesh Micro and Small Enterprises Facilitation Council calls both sides for conciliation; if that fails, it arbitrates and passes an award.
- The award is enforced like a decree; a buyer who appeals must deposit 75% of the amount first.