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 Ludhiana
Ludhiana’s hosiery, bicycle and machine-tool units sell to distributors and brands across India on 60 to 120 day credit, with post-dated cheques still common in the trade. Section 138 and MSME Samadhaan (Punjab’s Facilitation Council) cover most situations, and a notice sent within days of the default is what keeps a hosiery season’s dues recoverable.
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 Ludhiana
| Route | Forum |
|---|---|
| Section 138 (cheque bounce) | Judicial Magistrate courts, Ludhiana, for Section 138 |
| Summary suit / recovery suit | District Court, Ludhiana, and its Commercial Court for recovery suits |
| MSME Samadhaan | Punjab Micro and Small Enterprises Facilitation Council (detail) |
| Arbitration | As per the contract clause |
How FundRaksha works for auto components and ancillaries suppliers in Ludhiana
- 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 Ludhiana or before the Council if needed.
30% on recovery, nothing upfront.