Tired of Chasing Pending Payments?
Your guide to MSME payment recovery. Discover how Micro, Small, and Medium Enterprises can effectively recover outstanding dues without the complexities and costs of traditional court proceedings.
Start Your Recovery JourneyThe Growing Challenge of Delayed Payments
Delayed payments critically impact MSME cash flow, hindering growth and operations. The government has introduced specialized portals to address this, and their usage is on the rise, indicating the scale of the problem.
Pathways for MSME Payment Recovery
The Ministry of MSME has established two primary, court-free initiatives to help you resolve payment disputes efficiently. Explore which one fits your needs for delayed payment recovery.
MSME Samadhaan Portal
A government portal where MSMEs can file applications against buyers for delayed payments. The case is then managed by the Micro and Small Enterprise Facilitation Council (MSEFC).
Learn about SamadhaanOnline Dispute Resolution (ODR)
A digital mechanism using mediation and arbitration to resolve disputes online. It's often faster, more flexible, and more cost-effective than traditional methods.
Explore ODRDeep Dive: The MSME Samadhaan Portal Process
Understanding the journey on the Samadhaan portal is key. This structured process is designed to move your case from filing an MSEFC complaint to resolution in a time-bound manner.
File Application
Submit your case online with necessary documents like invoices and work orders.
MSEFC Action
The council reviews the case and issues a notice to the buyer.
Conciliation
An attempt is made to reach a mutual settlement between both parties.
Arbitration & Award
If conciliation fails, the case moves to arbitration, and the council issues a final, legally binding award within 90 days.
Deep Dive: The Power of Online Dispute Resolution
Online Dispute Resolution (ODR) leverages technology to provide a faster, more accessible, and less formal alternative to recover money without going to court.
| Feature | ODR | Traditional Courts |
|---|---|---|
| Speed | Days to Weeks | Months to Years |
| Cost | Significantly Lower | High (Fees, Lawyers) |
| Location | Online, Anywhere | Physical Courtrooms |
| Formality | Informal & Flexible | Strict Procedures |
| Privacy | Confidential | Public Record |
Samadhaan vs. ODR: A Head-to-Head Look
Choosing the right path depends on your specific situation. This comparison highlights the key differences to help you make an informed decision.
Frequently Asked Questions
Get quick answers to common questions about MSME due recovery.
According to the MSMED Act, 2006, a buyer must make payment to an MSME supplier within 45 days of the acceptance of goods/services. Filing on the Samadhaan portal is linked to this timeline to enforce payment recovery.
Yes, the award passed by the MSEFC through arbitration is legally binding, similar to a decree from a civil court. It can be enforced if the buyer fails to comply with the payment recovery order.
Yes, the award passed by the MSEFC through arbitration is legally binding, similar to a decree from a civil court. It can be enforced if the buyer fails to comply.
Yes. ODR is not limited to MSMEs. Any business or individual can use ODR platforms to resolve commercial disputes, provided both parties agree to the process. It is highly flexible.
ODR is a consensual process. If one party refuses to participate, the process cannot proceed. In such cases, you might have to resort to other legal avenues like MSME Samadhaan or filing a suit in court.