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MSME Samadhan Scheme: Delayed Payment Monitoring Scheme

MSME Samadhan Scheme: Delayed Payment Monitoring Scheme


Micro, Small, and Medium Enterprises (MSE Enterprises) play a crucial role in India’s economic landscape, contributing significantly to growth, innovation, and employment. However, delayed payments can impede their operations and growth. The MSME Samadhan Scheme aims to address this issue effectively, ensuring timely payments to MSE Enterprises and fostering their sustained development.

Overview of MSME Samadhan Scheme:

The MSME Samadhan Scheme, launched in 2017 under the Micro, Small, and Medium Enterprise Development (MSMED) Act of 2006, facilitates the timely recovery of payments owed by buyers to MSE Enterprises. By ensuring prompt payment settlements, the scheme creates an environment conducive to the growth and prosperity of MSEs.

Understanding of MSME Samadhan Scheme:

Under the MSMED Act, 2006, MSE Enterprises are entitled to receive compound interest from buyers if payments are not made within 45 days of accepting goods or services. The scheme aims to enforce this provision, providing MSEs with a mechanism to claim overdue payments and interest.

Eligibility for MSME Samadhan Scheme:

Any MSE Enterprise with a valid Udyog Aadhaar Number (UAN) can file an application through the MSME Samadhan Portal. Classification between Micro, Small, and Medium Enterprises follows the guidelines outlined in Section 7 of the MSMED Act, 2006.

Process for Filing a Claim under MSME Samadhan Scheme:

Filing a claim under the MSME Samadhan Scheme has been streamlined through an online portal offered by the Ministry of MSME. Here’s a stepwise guide to navigate through the process effortlessly:

  1. Visit the MSME Samadhan Portal and click on ‘Case Filing for Entrepreneur/MSE Units’.
  2. Choose your MSME registration type: Udyog Aadhaar Number or Udyam Registration Number.
  3. Log in with your registration number and mobile number, and fill in the claim application with necessary information and documents.
  4. Submit the case for review by the MSME Samadhan team, and receive an acknowledgment of receipt.
  5. An auto-generated notice is sent to the buyer, ordering payment within the stipulated time.

Documents Required for Filing a Claim under MSME Samadhan Scheme:

  • Copies of Invoices issued by the MSE Supplier.
  • Copies of agreements or Purchase Orders between the MSE supplier and the buyer.
  • Proof of Delivery of Goods or Services.
  • Any other relevant documents supporting the claim.

What if Buyer has not Responded to or Mutually Settled Disputed Amount within Stipulated Time Mentioned in Notice?

In such cases:

  • Conciliation proceedings under section 18(2) can be initiated by the MSME facilitation council.
  • If conciliation fails, arbitration proceedings under section 18(3) can be pursued.
  • An appeal against decree, award, or order can be made under section 19.
  • Execution of arbitral decree, award, or order follows the provisions of section 36.

MSME Samadhaan vs. Insolvency & Bankruptcy Code, 2016 – Which Road to Recovery is Suitable?

The choice between MSME Samadhaan and filing under the IBC depends on factors such as the nature of the dispute, willingness to maintain business relationships, severity of financial distress, and legal implications. Careful assessment and expert advice are essential to determine the most appropriate course of action.

Facts & Figures of MSME Samadhaan Portal (as on 05th May, 2024):

  • Total Applications Filed: 1,88,321 Cases
  • Cases Mutually Settled: 17,374 Cases
  • Cases Transferred to MSEFC: 1,70,947 Cases
  • Cases Disposed by MSEFC: 35,778 Cases
  • Cases under Observation of MSEFC: 38,838 Cases
  • Cases Yet to be Viewed by MSEFC: 47,797 Cases
  • Applications Rejected by MSEFC: 48,534 Cases

While the MSME Samadhaan portal shows room for improvement, it remains beneficial for MSE Enterprises by facilitating payment recovery and monitoring delays. With continued efforts, the portal can enhance efficiency and serve MSEs more effectively in the future.



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