The route that works
Most engineering suppliers are Udyam-registered, so the MSME Act’s 45-day limit and statutory interest apply to OEM and EPC buyers, including PSUs. A legal notice followed by MSME Samadhaan is the standard route; large contracts often add arbitration.
How dues arise in engineering, fabrication and machine tools
Purchase orders with 45 to 90 day terms, frequent “hold” on payments pending inspection, and debit notes for rejections.
Proof that wins
The claim is built from purchase orders, delivery challans and GRNs, inspection and test certificates, invoices and the buyer’s rejection or debit notes. The buyer’s own replies (“will pay next week”) are admissions; part-payments and signed ledger confirmations restart the three-year limitation period.
Mistakes that weaken a claim
- Deliveries without GRN acknowledgement
- Rejections not contested in writing
- Tooling and development costs not covered by a PO
- Accepting payment terms longer than 45 days in writing (the Act caps them)
Where engineering, fabrication and machine tools dues concentrate
- Engineering, fabrication and machine tools in Rajkot
- Engineering, fabrication and machine tools in Coimbatore
- Engineering, fabrication and machine tools in Pune
- Engineering, fabrication and machine tools in Faridabad
- Engineering, fabrication and machine tools in Ghaziabad
- Engineering, fabrication and machine tools in Ludhiana
- Engineering, fabrication and machine tools in Vadodara
- Engineering, fabrication and machine tools in Kolhapur
- Engineering, fabrication and machine tools in Hubballi-Dharwad
- Engineering, fabrication and machine tools in Tiruchirappalli
- Engineering, fabrication and machine tools in Jamshedpur
- Engineering, fabrication and machine tools in Raipur
- Engineering, fabrication and machine tools in Hyderabad
- Engineering, fabrication and machine tools in Bengaluru
- Engineering, fabrication and machine tools in Chennai
- Engineering, fabrication and machine tools in Kolkata
- Engineering, fabrication and machine tools in Kanpur
- Engineering, fabrication and machine tools in Nagpur
- Engineering, fabrication and machine tools in Nashik
- Engineering, fabrication and machine tools in Visakhapatnam
- Engineering, fabrication and machine tools in Agra
- Engineering, fabrication and machine tools in Bhopal
- Engineering, fabrication and machine tools in Bhubaneswar
- Engineering, fabrication and machine tools in Ranchi
- Engineering, fabrication and machine tools in Amritsar
- Engineering, fabrication and machine tools in Jalandhar
- Engineering, fabrication and machine tools in Meerut
- Engineering, fabrication and machine tools in Jodhpur
- Engineering, fabrication and machine tools in Udaipur
- Engineering, fabrication and machine tools in Chhatrapati Sambhajinagar (Aurangabad)
- Engineering, fabrication and machine tools in Mysuru
- Engineering, fabrication and machine tools in Salem
- Engineering, fabrication and machine tools in Hosur
What FundRaksha does
- Free assessment of your invoices and documents.
- Legal notice by a dedicated advocate within 24 hours, built around your trade’s paperwork.
- Negotiation, with disputed items separated from undisputed dues.
- MSME Samadhaan, Section 138, summary suit or arbitration if needed.
30% of the amount recovered; nothing upfront.