MSME Samadhaan is the online delayed-payment grievance system run by the Ministry of MSME. A Udyam-registered micro or small supplier files an application with invoices and proof of delivery; the state Facilitation Council then tries conciliation and, if that fails, arbitrates. The buyer owes compound interest at three times the RBI bank rate from the day payment fell due.
How MSME Samadhaan works in India
The supplier logs in with its Udyam Registration Number, enters the buyer details, uploads invoices, purchase orders, delivery proof and a statement of account, and submits the application. The portal routes it to the Facilitation Council of the supplier's state. The buyer is served, the Council calls both sides for conciliation, and if no settlement is reached within the conciliation stage the matter is referred to arbitration, either by the Council itself or by an institution it nominates.
- Check Udyam registration and that the supply was goods made or services rendered (not pure trading).
- Compute the due date: the agreed date, capped at 45 days from acceptance, or 15 days where nothing was agreed.
- File on the portal with documents; the buyer gets 15 days to respond on the portal.
- Conciliation hearing, then arbitration if needed; award enforceable as a decree.
Why it matters for getting paid
Samadhaan is the only forum where the supplier does not pay court fees on the claim, the hearing happens in the supplier's own state, and the interest is set by statute rather than argued. Because the award cannot be appealed without a 75% deposit, buyers have a strong reason to settle during conciliation. For a supplier with a few lakh outstanding, this is usually the most cost-effective legal route in India. See the 45-day payment rule and Section 16 interest.
How FundRaksha uses it
FundRaksha's advocates first send a legal notice (within 24 hours of complete documents) quoting the Samadhaan interest the buyer will face; about 60% of cases settle at that stage. Where the buyer still does not pay, the same advocate files the Samadhaan application, prepares the statement of claim with the interest computation and appears before the Council. The fee is 30% of what is recovered, nothing upfront. Book a free consultation to check whether your invoices qualify.
Worked example (hypothetical)
A Udyam-registered small manufacturer in Coimbatore supplies ₹10,00,000 of components, accepted on 1 January, with no written credit period. Payment is due by 16 January (15 days). The buyer pays nothing for 12 months. If the RBI bank rate is assumed at 6.5%, three times is 19.5% a year, or 1.625% a month compounded. Interest for 12 months is about ₹2,13,400 (₹10,00,000 × (1.01625^12 − 1)), so the claim before the Council is roughly ₹12,13,400. Use the MSME interest calculator with the actual current bank rate.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.