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 Haryana 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 Panipat: what is specific here
Panipat is India’s textile recycling and home-furnishing capital, selling blankets, rugs and yarn to traders nationwide and to export houses. Credit periods are long and informal; disputes are usually about quality and quantity, so delivery proof, e-way bills and acceptance records decide whether a notice and suit succeed.
Main industries: home textiles and handloom exports, recycled yarn and blankets, petrochemicals supply, dyeing and processing and agri-trading.
Courts: Judicial Magistrate courts, Panipat, for Section 138; District Court, Panipat, and its Commercial Court for recovery suits.
MSME claims: Udyam-registered micro and small suppliers in Panipat file on MSME Samadhaan, heard by the Haryana Micro and Small Enterprises Facilitation Council (Directorate of Industries and Commerce, Government of Haryana, Chandigarh). The Council sits where the supplier is, so a Panipat 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 Haryana 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.