Can the buyer challenge the award?

Only by an application under Section 34 of the Arbitration Act before the competent court (ultimately the Patna High Court on appeal), after depositing 75% of the awarded amount.

I am a trader. Can I file?

Generally no; Councils usually do not entertain delayed-payment claims from wholesale or retail traders. Traders recover through notices, Section 138 and summary suits.

Is the consultation really free?

Yes. The consultation and case assessment are free, with no obligation. If you decide to go ahead, there is still nothing to pay upfront: FundRaksha Legal charges 30% only on the amount actually recovered. Court fees, if a matter goes to court, are borne by the client.

Are there any upfront fees?

No. FundRaksha Legal charges a 30% success fee, only on the amount actually recovered. If nothing is recovered, there is no success fee. Court fees, if any, are borne by you and told to you upfront.

How fast does my case start?

Within 24 hours of receiving your complete documents, a dedicated advocate is assigned and the legal notice is sent as an e-notice, followed by registered post.

Do most cases go to court?

No. About 60% of our cases settle before anything is filed, through the notice, negotiation and a payment plan. The rest go to MSME Samadhaan, a Section 138 complaint, a civil suit or arbitration, handled by the same advocate.

Do you work with businesses anywhere in India?

Yes. Notices, filings and follow-ups are handled digitally, and advocates appear wherever the matter is heard. FundRaksha works with suppliers, manufacturers, traders, distributors and service businesses in every state.

Reference

Bihar Micro and Small Enterprises Facilitation Council

Bihar’s business is distribution, construction and government supply, where payments are delayed through reconciliation and approvals rather than refused. A clear statement of account in a legal notice, followed by Samadhaan for Udyam units, is usually what moves them; the Council sits in Patna. This page explains how a Bihar micro or small supplier takes a delayed-payment claim to the Council.

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1,000+

businesses onboarded

₹50 Cr+

invoice value handled

700+

businesses got their money back

60%

of cases settled before court

Short answer

A Udyam-registered micro or small enterprise located in Bihar files its delayed-payment claim on MSME Samadhaan; it is heard by the Bihar Micro and Small Enterprises Facilitation Council, run from the Directorate of Industries, Government of Bihar, Patna. The Council conciliates first, then arbitrates, aiming to decide within 90 days, and awards interest at three times the RBI bank rate.

Filing from Bihar

Confirm Udyam registration and that the supply was made after registration.
Compute the due date (agreed date, at most 45 days from acceptance; 15 days if nothing was agreed) and the interest to date.
Send a legal notice citing Sections 15 and 16 of the MSMED Act; many buyers settle here.
File on samadhaan.msme.gov.in with invoices, proof of delivery, ledger and the notice.
The Bihar Micro and Small Enterprises Facilitation Council issues notice to the buyer, holds conciliation, then arbitration.
The award is enforced as a decree through the civil court; a buyer who appeals must deposit 75% first.

Industries that use the Bihar Council most

Suppliers in FMCG and pharma distribution, construction materials, government supply, agri-trading, food processing account for most delayed-payment references from Bihar. Buyers may be anywhere in India; jurisdiction follows the supplier.

Costs and timeline

Filing on MSME Samadhaan has no court fee. The Act asks the Council to decide within 90 days of the reference; in practice the timeline depends on the Council’s calendar and the buyer’s conduct. FundRaksha files and appears for 30% of the amount recovered, nothing upfront, after a free consultation. See also the Bihar state page.

Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.

Free, no obligation

Free consultation and case assessment

मुफ़्त सलाह, कोई शुल्क नहीं

Talk to a FundRaksha recovery expert for free. In one call we assess your unpaid invoices and tell you honestly what can be recovered, how, and in roughly how long. No fee for the call, no obligation, and no upfront cost if you go ahead: our fee is a percentage of what we actually recover.

A review of your invoices, purchase orders, delivery proof and the buyer’s replies
An honest assessment of recovery chances and the right route: reminders, legal notice, MSME Samadhaan, Section 138 or a civil suit
A realistic timeline and the exact cost: nothing upfront, a success fee only on recovery
A dedicated advocate assigned within 24 hours if you decide to proceed

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Keep these ready

The unpaid invoice(s) and payment terms
Purchase order, delivery challan, e-way bill or proof of service
Messages, emails or letters about the payment
For a bounced cheque: the cheque and the bank return memo

No recovery, no fee. Court fees, if any, are borne by the client and told upfront.

FAQ

Questions, answered

Yes. Section 18(4) of the MSMED Act gives the Council where the supplier is located jurisdiction over a buyer anywhere in India.

This page is general information for Indian businesses, not legal advice for your specific case. Laws, rates and procedures change; speak to an advocate before acting. FundRaksha LegalTech Pvt Ltd is a technology company; legal work is carried out by enrolled advocates.