Tier-1 and OEM buyers are exactly whom the MSMED Act targets: payment beyond 45 days attracts compound interest at three times the bank rate, and the Facilitation Council has jurisdiction where the supplier is. A notice citing Section 15 and 16 of the Act often gets the portal unblocked; Samadhaan follows if not.
Auto components and ancillaries in Chennai
Chennai’s auto cluster in Oragadam, Sriperumbudur and Ambattur means thousands of tier-2 and tier-3 component suppliers waiting on large buyers, often beyond the MSME Act’s 45-day limit. Leather exporters in Pallavaram and engineering job-workers in Guindy face similar delays. MSME Samadhaan before the Tamil Nadu Facilitation Council is a strong route for Udyam-registered units here.
Scheduled deliveries against open POs, vendor portals, 60 to 120 day terms, bill discounting and frequent debit notes for PPM rejections.
Proof to collect
Typically schedules and POs, ASN and GRN records, portal acknowledgements, quality reports and the vendor agreement.
- Avoid: portal-based acceptance with no paper trail saved
- Avoid: debit notes accepted silently
- Avoid: price revisions agreed verbally
- Avoid: fear of losing the business, which lets dues age past a year
Forums in Chennai
| Route | Forum |
|---|---|
| Section 138 (cheque bounce) | Metropolitan Magistrate courts at Egmore, George Town, Saidapet and Alandur for Section 138 |
| Summary suit / recovery suit | City Civil Court and the Madras High Court Commercial Division for recovery suits. |
| MSME Samadhaan | Tamil Nadu Micro and Small Enterprises Facilitation Council (detail) |
| Arbitration | As per the contract clause |
How FundRaksha works for auto components and ancillaries suppliers in Chennai
- Free assessment of the documents your trade produces.
- Notice within 24 hours, itemising invoices, disputed and undisputed amounts and interest.
- Negotiation and documented settlement.
- Filing in Chennai or before the Council if needed.
30% on recovery, nothing upfront.