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 Maharashtra Micro and Small Enterprises Facilitation Councils (regional councils for Mumbai, Pune, Nashik, Nagpur, Aurangabad and Amravati regions): 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 Pune: what is specific here
Pune’s Chakan, Pimpri-Chinchwad and Talegaon belts hold one of India’s densest networks of auto and engineering suppliers, most of them Udyam-registered small units supplying OEMs and tier-1s. IT vendors in Hinjewadi and Magarpatta add a steady flow of service invoices. Both groups benefit from MSME Samadhaan and from the statutory interest at three times the bank rate.
Main industries: automobile and auto components, IT services, engineering and machine tools, education and training services and FMCG and agri-processing.
Courts: Judicial Magistrate First Class courts at the Shivajinagar court complex for Section 138; District and Sessions Court, Pune, and its Commercial Court for recovery suits.
MSME claims: Udyam-registered micro and small suppliers in Pune file on MSME Samadhaan, heard by the Maharashtra Micro and Small Enterprises Facilitation Councils (regional councils for Mumbai, Pune, Nashik, Nagpur, Aurangabad and Amravati regions) (Directorate of Industries, Government of Maharashtra, Mumbai, and regional Joint Director of Industries offices). The Council sits where the supplier is, so a Pune 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 Maharashtra Micro and Small Enterprises Facilitation Councils (regional councils for Mumbai, Pune, Nashik, Nagpur, Aurangabad and Amravati regions) 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.