MSME Samadhaan is the online portal (samadhaan.msme.gov.in) through which a Udyam-registered micro or small enterprise refers a delayed payment to the Micro and Small Enterprises Facilitation Council under Section 18 of the MSMED Act. The Council conciliates and then arbitrates, with a 90-day target. The buyer owes compound interest at three times the RBI bank rate and must deposit 75 percent of any award to appeal. FundRaksha handles the filing and hearings end to end.
Eligibility checklist
- You were a registered micro or small enterprise (Udyam, or earlier Udyog Aadhaar) when the goods or services were supplied
- The buyer accepted the goods or services, or did not object in writing within 15 days
- Payment is overdue beyond the agreed date, which cannot exceed 45 days from acceptance (15 days if nothing was agreed)
- You have the invoices, delivery or completion proof and the buyer's details
Medium enterprises and unregistered suppliers cannot use Samadhaan for those supplies; see legal debt recovery for alternatives. Traders registered under Udyam have limited access; the free consultation confirms your position.
How the Samadhaan process runs
- Application. Filed online with Udyam number, buyer details, invoices and the claim for principal and interest. The portal sends it to the Facilitation Council for your state (or the state where you are located, if the buyer is elsewhere).
- Buyer's response. The buyer is notified and may pay, dispute or ignore. Many pay at this stage once the interest is tabulated.
- Conciliation. The Council attempts a settlement. Agreements reached here are recorded and binding.
- Arbitration. If conciliation fails, the Council arbitrates (itself or through an institution) under the Arbitration and Conciliation Act, and passes an award for principal and interest.
- Enforcement. The award is enforced as a decree. A buyer challenging it must first deposit 75 percent of the awarded amount.
The statutory target is 90 days from reference. Real timelines depend on the Council's workload; our advocates follow up at every stage and push for early conciliation.
Where self-filed cases go wrong
The portal makes filing easy, which is exactly the problem: thousands of references are filed with wrong interest calculations, missing acceptance proof, the wrong buyer entity, or claims that mix pre-registration and post-registration supplies. Buyers' lawyers attack these errors at the first hearing. Common failures:
- Interest computed at a flat rate instead of compound with monthly rests, or at the wrong RBI bank rate for each period
- No proof of the date of acceptance, so the 45-day clock cannot be fixed
- Supplies made before Udyam registration included in the claim
- Notice and reference addressed to a branch or trade name rather than the legal entity
- No appearance at conciliation, leading to the matter being treated as abandoned
FundRaksha's advocates prepare the interest schedule (see the MSME interest calculator), the acceptance evidence and the correct party details before filing, and attend every hearing.
What FundRaksha does for you
| Step | Done by FundRaksha |
|---|---|
| Eligibility and document check | Free consultation |
| Pre-reference legal notice citing s.15, s.16, s.18 and s.43B(h) | Within 24 hours |
| Interest schedule and claim statement | Prepared by the advocate |
| Portal filing and tracking | Done on your behalf with your Udyam credentials |
| Conciliation and arbitration hearings | Advocate appears |
| Enforcement of award | Execution petition if the buyer does not pay |
The fee is 30% of what is recovered. There is no court fee for the reference, and nothing is payable upfront.
Facilitation Councils by state
Every state and union territory has at least one Council; larger states have several, by district or region. FundRaksha appears before Councils in Maharashtra, Karnataka, Rajasthan and every other state. The official portal is samadhaan.msme.gov.in. To check your eligibility and the interest owed to you, book a free consultation. For the wider context, read MSME debt recovery.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.