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 Rajasthan 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 Jodhpur: what is specific here
Jodhpur’s furniture and handicraft exporters supply buyers across India and overseas, and guar and textile processors sell to industrial buyers on credit. The Rajasthan High Court sits here, and the state’s Facilitation Council handles MSME claims; export dues turn on contract and shipping documents.
Main industries: wooden and iron handicrafts and furniture exports, guar gum and agri-processing, textiles and dyeing, steel furniture and tourism.
Courts: Judicial Magistrate courts, Jodhpur, for Section 138; District Court, Jodhpur, and its Commercial Court for recovery suits; the Rajasthan High Court principal seat for high-value matters.
MSME claims: Udyam-registered micro and small suppliers in Jodhpur file on MSME Samadhaan, heard by the Rajasthan Micro and Small Enterprises Facilitation Council (Commissionerate of Industries, Government of Rajasthan, Jaipur). The Council sits where the supplier is, so a Jodhpur 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 Rajasthan 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.