Global Vision Law Firm, led by Adv. Amarendra Kumar Dubey, is recognised among the best MSME lawyers in Delhi for delayed payment recovery, MSEFC references, and buyer-side compliance under the MSMED Act, 2006. If a buyer has held your payment beyond the statutory 45-day window, we compute the interest you're owed under Section 16 and pursue it through the Micro and Small Enterprise Facilitation Council — the fast-track remedy built specifically for MSME suppliers.
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The Micro, Small and Medium Enterprises Development Act, 2006 doesn't just encourage timely payment — Sections 15 to 18 build a specific, faster remedy for micro and small suppliers that ordinary contract law doesn't offer.
Payment must be made within the period agreed in writing — but that period can never exceed 45 days from acceptance or deemed acceptance. Without a written agreement, the buyer must pay within 15 days.
Miss the deadline, and the buyer owes compound interest with monthly rests at three times the RBI-notified bank rate — running automatically from the "appointed day," with no notice or demand required to trigger it.
Instead of a lengthy civil suit, a supplier can file a reference before the Micro and Small Enterprise Facilitation Council (MSEFC), which must attempt conciliation, then arbitration if needed, and decide the matter within 90 days.
To invoke this remedy, the supplier must have held a valid Udyam Registration at the relevant time — without it, this specific fast-track protection isn't available, even if the underlying debt is genuine.
The Section 15-18 delayed payment mechanism is available only to micro and small enterprises as suppliers — medium enterprises are specifically excluded from this interest-and-MSEFC remedy, though other civil and commercial remedies remain open to them. Knowing which category your business falls into is the first thing we check before advising on strategy.
Adv. Amarendra Kumar Dubey, Founder & Managing Partner of Global Vision Law Firm, brings over 15 years of litigation experience to MSME recovery matters — precise interest computation, correctly drafted MSEFC references, and the follow-through to actually collect on an award, not just obtain one.
Section 16 interest compounds monthly at three times the bank rate — get the appointed day or the rate calculation wrong, and you either under-claim what you're owed or hand the buyer a technical objection to fight. We compute this precisely before filing, not after a query is raised.
We represent MSME suppliers and buyers based in Delhi and file MSEFC references for clients across the wider NCR, guiding you to the Facilitation Council with jurisdiction over your specific matter.
From a first demand notice to execution of an MSEFC award, and compliance advisory for buyers on the other side of the table.
Recovering unpaid invoices from buyers who've missed the Section 15 deadline, with interest computed correctly under Section 16 from day one.
Drafting and filing references before the Micro and Small Enterprise Facilitation Council under Section 18, with Udyam certificate, invoices and proof of supply in order.
Precise calculation of compound interest at three times the RBI bank rate, with monthly rests, from the correctly determined appointed day.
Advising businesses on obtaining and maintaining Udyam Registration correctly — the essential precondition to invoking the MSMED Act's delayed payment remedy.
Representing clients through the MSEFC's conciliation stage and, where that fails, the arbitration or arbitral reference that follows.
Advising companies on MSME vendor payment tracking, Form MSME-1 filings, and Section 43B(h) income tax exposure to avoid inadvertent non-compliance.
In-depth guides on MSME payment recovery, the MSEFC process, and compliance obligations for buyers.
Recovering a delayed MSME payment starts with confirming Udyam registration, computing the exact interest owed under Section 16, and choosing between a demand notice, an MSEFC reference, or a civil suit depending on the buyer's response. We handle the full recovery cycle for suppliers across Delhi, from the first notice through to execution of a final award.
Learn More →The Micro and Small Enterprise Facilitation Council is a specific, faster forum built for MSME suppliers — but the reference must be drafted correctly, with the Udyam certificate, invoices, and proof of delivery attached, for the Council to accept it. We draft and file MSEFC references for suppliers in Delhi and represent clients through conciliation and arbitration.
Learn More →Section 16 interest is compound, calculated with monthly rests at three times the RBI-notified bank rate, running from the "appointed day" defined under Section 2(b) — a calculation that trips up suppliers and buyers alike if done informally. We compute this precisely for every claim we file, and can verify a calculation a client has already prepared.
Learn More →Without a valid Udyam Registration at the relevant time, a supplier cannot invoke the MSMED Act's delayed payment remedy — no matter how genuine the underlying debt. We advise businesses on registering correctly, keeping registration current, and confirming eligibility before a dispute arises rather than discovering a gap after payment is already overdue.
Learn More →Section 43B(h) of the Income Tax Act denies a buyer the deduction for amounts owed to a micro or small enterprise supplier unless payment is made within the Section 15 timeline — shifting the deduction to the year of actual payment otherwise. We advise buyers on vendor payment tracking and MSME classification to avoid this tax exposure, and advise suppliers on using this leverage in payment negotiations.
Learn More →Where MSEFC conciliation fails, the matter proceeds to arbitration — either conducted by the Council itself or referred to an institution or arbitrator it appoints. We represent clients through this arbitration stage, and separately advise on how a supply contract's own arbitration clause interacts with the MSEFC's statutory jurisdiction.
Learn More →Unpaid invoices are the most common trigger for an MSEFC reference — but recovery depends on clean documentation: purchase orders, delivery proof, GST-compliant invoices, and the Udyam certificate current at the time of supply. We help suppliers assemble invoice-recovery claims that meet the MSEFC's documentary expectations and pursue them to actual payment.
Learn More →MSME Samadhaan is the government's online portal for filing and monitoring delayed payment references, letting suppliers track a case's status alongside the physical MSEFC process. We assist clients with both the online Samadhaan filing and the substantive drafting behind it, so the claim is procedurally and factually sound from the outset.
Learn More →Startups are frequently on both sides of MSME payment issues — as suppliers waiting on enterprise clients, and as buyers managing their own vendor obligations under Section 43B(h). We advise founders on structuring vendor contracts, tracking payment deadlines, and pursuing recovery when a larger client delays payment beyond the statutory window.
Learn More →A clear, document-driven process for recovering what your business is owed.
We verify your Udyam Registration status and confirm your claim falls within the MSMED Act's delayed payment framework before proceeding.
We calculate exactly when the buyer's obligation matured and the compound interest accruing since, at three times the RBI bank rate.
A formal demand notice setting out the principal, computed interest, and a final opportunity to pay before a reference is filed — often enough to prompt settlement on its own.
If unpaid, we file a reference under Section 18 before the Micro and Small Enterprise Facilitation Council with all supporting documentation in order.
Representing you through the Council's conciliation attempt and, if that fails, the arbitration stage — statutorily meant to conclude within 90 days of the reference.
Once an award is passed in your favour, we pursue execution proceedings so the outcome is actual payment, not just a paper decision.
Why the MSEFC route is usually the stronger option for a qualifying MSME supplier.
| Parameter | MSEFC Reference (Section 18) | Ordinary Civil Suit |
|---|---|---|
| Eligibility | Micro & small enterprises with Udyam Registration only | Any party with a valid contractual claim |
| Statutory Timeline | 90 days from reference | No fixed timeline — often years |
| Interest Rate | 3× RBI bank rate, compounded monthly (Section 16) | As per contract or court discretion |
| Process | Conciliation, then arbitration by the Council | Full civil trial procedure |
| Medium Enterprises | Not eligible for this remedy | Available regardless of enterprise size |
Precision on the numbers, discipline on the deadlines.
Over 15 years of litigation experience, applied to the specific procedural and computational demands of MSME recovery matters.
Section 16's compound-interest-with-monthly-rests formula is exact — we get it right at filing so it isn't picked apart later.
Recovery for suppliers, and compliance advisory for buyers managing Section 43B(h) exposure — a complete view of how MSME law actually plays out commercially.
You can visit our Delhi office, meet your lawyer, and go through your invoices and records face-to-face before we file anything.
We don't stop at an MSEFC award — our team pursues execution so a favourable order translates into actual payment.
Feedback from MSME suppliers and buyers we've represented.
"A large client held our payment for over four months. The team filed our MSEFC reference with the interest already calculated correctly, and we recovered the full amount with interest without a long court battle.
"We didn't realise our Udyam registration had lapsed until we needed to file. The team helped us fix that and still get our claim in on time — a detail we would have completely missed on our own.
"As a buyer, we needed help tracking which vendors qualified as MSMEs for tax purposes. Adv. Dubey's team set up a compliance process that keeps us clear of Section 43B(h) issues going forward.
Common questions about MSME payment recovery and compliance in Delhi.
Look for a Delhi-based firm with genuine experience filing references before the Micro and Small Enterprise Facilitation Council (MSEFC), not just general commercial litigation experience. The best MSME lawyers in Delhi will confirm your Udyam registration status, correctly compute interest under Section 16 of the MSMED Act, and give you a transparent written fee estimate before filing.
Under Section 15 of the MSMED Act, 2006, a buyer must pay within the period agreed in writing, which cannot exceed 45 days from the date of acceptance or deemed acceptance of the goods or services. If there is no written agreement, payment must be made within 15 days.
Section 16 of the MSMED Act makes the buyer liable to pay compound interest with monthly rests, at three times the bank rate notified by the Reserve Bank of India, running from the appointed day until actual payment.
No. The delayed payment interest and MSEFC reference mechanism under Sections 15 to 18 of the MSMED Act is available only to micro and small enterprises as suppliers. Medium enterprises are excluded from this specific remedy, though other contractual and civil remedies remain available to them.
Section 43B(h) of the Income Tax Act denies a buyer an income tax deduction for amounts payable to a micro or small enterprise supplier unless the payment is actually made within the time limit specified in Section 15 of the MSMED Act. Deduction is otherwise allowed only in the year of actual payment, making timely payment to MSME vendors a direct tax planning issue for buyers, not just a compliance formality.
Visit our Delhi office for a free consultation, or connect with us online. Whether it's a delayed payment, an MSEFC reference, or buyer-side compliance advice — our team led by Adv. Amarendra Kumar Dubey is ready to help.
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