§1Who it is for

  • Micro and Small Enterprises with unpaid dues from buyers

Useful if

Any MSE with dues stuck beyond 45 days.

Do not spend time on it if

Medium enterprises or disputes not about supply payments.

§2Eligibility

  1. Micro or small enterprise supplier (MSEFC jurisdiction under MSMED Act).

§3Benefits

  • File delayed-payment case online; MSEFC mediates and then arbitrates.
  • Online Dispute Resolution portal for pre-adjudication settlement, incl. small claims.
  • Under 2026 amendment: mediation in 90 days; arbitration referral within 30 days; award within 90 days of pleadings; awards recoverable as arrears of land revenue via District Collector.

§4Norms — pattern of assistance

  1. Buyer must pay within agreed period, not exceeding 45 days from acceptance (MSMED Act, PIB 2023).
  2. Buyer challenging an award in court deposits 75% of the amount; under 2026 amendment court must release at least 50% to the MSE if the case is pending over six months.
  3. Companies paying MSEs beyond 45 days file a half-yearly return with MCA (PIB 2023).

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    File on https://samadhaan.msme.gov.in or the MSME ODR portal.

§7Pros and cons

Merits

  • Cheap, online, and the 2026 amendment adds hard timelines and land-revenue recovery (PIB Aug 2026).
  • 161 MSEFCs across States/UTs (PIB Aug 2026).

Demerits

  • Only micro and small units can file, not medium.
  • Interest rate rule (MSMED s.16) not confirmed in sources read.
  • Timelines in the 2026 amendment apply only once notified.

→Related schemes

Need help with MSME Samadhaan?

Eligibility check, DPR and application file — ask us on WhatsApp.

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Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. PIB, 24 Jul 2023: Schemes to clear delayed payment in MSMEs (Rajya Sabha reply)
  2. PIB explainer, 11 Aug 2026: MSME Development (Amendment) Bill, 2026
  3. PIB backgrounder, 15 Feb 2026: Union Budget 2026-27 — Building Champion MSMEs
  4. MSME Samadhaan portal
  5. Ministry of MSME: Annual Report 2025-26

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.