Delayed payments are one of the biggest cash-flow problems for micro and small businesses in Raipur and across Chhattisgarh. The Micro, Small and Medium Enterprises Development Act, 2006 gives registered micro and small suppliers a dedicated route to recover what they are owed — with interest.
How the law protects MSE suppliers
- Payment deadline: a buyer must pay on the agreed date, and the agreed period cannot exceed 45 days from acceptance of goods or services. Where there is no written agreement, payment is due within 15 days.
- Statutory interest: if the buyer pays late, compound interest at three times the RBI bank rate applies (Section 16).
- Facilitation Council: either party can refer the dispute to the MSE Facilitation Council (Section 18), which conducts conciliation and, if needed, arbitration. The Act asks the Council to decide within 90 days of the reference.
- Deposit to challenge: a buyer who wants to challenge an award must first deposit 75% of the amount awarded (Section 19).
How we handle a recovery matter
- Document review — purchase orders, invoices, delivery proof, ledgers and your Udyam certificate.
- Demand notice — a legal notice setting out the principal, the statutory interest and a deadline. Many matters settle here.
- MSEFC reference — filing through the MSME Samadhaan portal or directly before the Chhattisgarh Facilitation Council, with a claim statement and supporting documents.
- Conciliation and arbitration — representation at every hearing.
- Enforcement — execution of the award if the buyer still does not pay.
When to act
Interest keeps running, but evidence and relationships do not improve with time. If invoices are more than 45 days overdue, it is worth reviewing your options early.