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How to file a delayed payment complaint on MSME Samadhaan

Last reviewed 19 October 2026. General information, not legal or tax advice.

Before you file

  • You must be a micro or small enterprise with a valid Udyam registration, and the supply should have been made after you registered.
  • The payment must be overdue beyond the period allowed by Section 15 of the MSMED Act (agreed period, at most 45 days from acceptance).
  • Send a final written reminder with a pay-by date first. It is good practice and is useful evidence.

Documents to keep ready

  • Udyam registration certificate
  • Purchase order, contract or work order showing the agreed credit period
  • Invoices and delivery challans / GRNs / proof of acceptance
  • Statement of account showing payments received and the amount outstanding
  • Copies of reminders sent (email, WhatsApp, letters)
  • Buyer’s full legal name, address, GSTIN and contact details

Filing step by step

  1. Go to the MSME Samadhaan portal and choose to file a new application.
  2. Enter your Udyam registration number and verify with the OTP sent to your registered mobile number.
  3. Enter the buyer’s details and its category (central government, state government, PSU or private).
  4. Add each unpaid invoice: number, date, amount, date of acceptance and amount outstanding.
  5. Upload supporting documents and submit. Note the application number to track progress.

What happens next

The application goes to the Micro and Small Enterprises Facilitation Council (MSEFC) of your state. The council first attempts conciliation between you and the buyer. If that fails, it takes up the matter as arbitration, or refers it to an institution, and passes an award that includes interest under Section 16. A buyer challenging the award in court must first deposit 75% of the amount.

Councils have historically taken time: CRISIL reported in August 2026 that about 16% of Samadhaan applications had been pending for more than a year. The MSMED (Amendment) Act, 2026 introduces time limits for each stage once notified — see the 45-day rule guide.

Work out what you are owed

Use the MSME interest calculator to compute interest on each invoice before you file.

Frequently asked questions

Is there a fee to file on MSME Samadhaan?

Filing an application on the Samadhaan portal itself is free. Your state’s facilitation council may have its own procedure for later stages; check with it.

Can I file against a government department or PSU?

Yes. The MSMED Act applies to any buyer, including central and state government bodies and public sector undertakings.

Does filing end the business relationship?

Not necessarily — many cases settle at conciliation. But it is a formal step, so most suppliers send a final written notice first.

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