Micro or small enterprise
Investment up to ₹25 crore and turnover up to ₹100 crore for small; ₹2.5 crore and ₹10 crore for micro (from 1 April 2025).
Not every unpaid invoice qualifies under the MSMED Act, 2006. Udyam registration, the nature of your supply, the 45-day rule and limitation all matter. Our MSME lawyers in Delhi, led by Adv. Amarendra Kumar Dubey and Adv. Kanhaiya Lal Mishra, check eligibility before you file so your case is not rejected.
Indicative self-check, not legal advice.
To claim under Sections 15 to 19 of the MSMED Act, a supplier should meet each of these.
Investment up to ₹25 crore and turnover up to ₹100 crore for small; ₹2.5 crore and ₹10 crore for micro (from 1 April 2025).
A valid Udyam certificate is required. Registration should be in place on the date of the contract or supply.
The claim must arise from goods supplied or services rendered. Loans, deposits and advances are not covered.
Goods or services accepted or deemed accepted. Delivery challans, GRNs, e-way bills and emails prove this.
Unpaid beyond the agreed date, which cannot exceed 45 days; or 15 days where there is no agreement.
File within three years of the due date. Read more on late payment interest.
A simple view of typical situations. Edge cases need a lawyer's review.
| Category | Investment up to | Turnover up to | Can claim under S.15–19? |
|---|---|---|---|
| Micro | ₹2.5 cr | ₹10 cr | Yes (with Udyam) |
| Small | ₹25 cr | ₹100 cr | Yes (with Udyam) |
| Medium | ₹125 cr | ₹500 cr | Generally no |
These cases are often rejected or challenged. Slide through them.
If the Udyam certificate is dated after the supply, the Section 15 to 19 route may not be available for that supply. Civil recovery or arbitration may still work.
Udyam registration of pure traders is for limited purposes, and their right to the delayed-payment remedy is contested. Seek a legal opinion.
The statutory MSME route generally prevails for eligible suppliers, but the clause and facts affect strategy and forum.
You can still file, but acceptance records and test reports become central to winning the claim.
If your size changed between supply and filing, the position on the contract date is generally examined. Keep your classification history.
New cases are filed on odr.msme.gov.in (mandatory since 15 October 2025). See also About the MSME Act 2006, MSME rights explained and delayed payment recovery.
13+ years of practice; 1400+ cases handled and successfully executed.
Reviews eligibility and forum strategy for MSME suppliers, with practice before the Supreme Court, High Court and NCLT.
Prepares ODR filings, statements of claim and interest computations, and follows through to execution.
A supplier that is a micro or small enterprise registered on the Udyam portal, that has supplied goods or rendered services to a buyer, and whose payment is overdue beyond the agreed period or 45 days. Registration should exist on the date of the contract or supply.
The payment-protection provisions in Sections 15 to 19 of the MSMED Act, 2006 are designed for micro and small enterprise suppliers. A medium enterprise usually has to pursue a civil or commercial suit or arbitration under its contract instead.
Yes. The supplier must be a registered micro or small enterprise. Courts look at whether registration existed on the date of the contract, so supplies made before registration are generally not covered.
Claims for supplies made before registration are generally treated as outside the Section 15 to 19 regime. You may still recover through a civil suit, summary suit or arbitration. A lawyer should review dates before you choose the forum.
Both. The Act covers suppliers of goods and providers of services, provided they are registered micro or small enterprises.
Yes. Any legal form (proprietorship, partnership firm, LLP, private limited company, cooperative and so on) can file if it holds a valid Udyam registration in the micro or small category.
This is a grey area. Retail and wholesale traders can hold Udyam registration, but the Ministry has indicated that this is for limited purposes such as priority-sector lending. Whether a trader can invoke Sections 15 to 19 is contested, so get a legal opinion first.
The buyer, which can be a private company, partnership, individual, government department or public sector undertaking, anywhere in India, who bought goods or services from you.
The general limitation period of three years for money claims is applied, so file as early as possible. Acknowledgement of the debt in writing can extend limitation, but do not rely on it.
Yes. A dispute does not remove your right to approach the Facilitation Council; the arbitrator decides the merits. Delivery proof and acceptance records become important.
On the MSME Online Dispute Resolution (ODR) portal at odr.msme.gov.in. It has been mandatory for new cases since 15 October 2025, and MSME Samadhaan no longer accepts new filings. The council with jurisdiction over the supplier's location handles the reference.
It is advisable. Registration dates, the nature of the transaction, limitation and the correct forum often decide the case. Global Vision Law Firm's MSME lawyers in Delhi review eligibility before filing.
Share your Udyam details and invoice dates for a quick eligibility opinion. Global Vision Law Firm, M-3 Gupta Tower, Commercial Complex, Azadpur, Delhi 110033.
+91 95998 01188 · globalvisionlawoffice@gmail.com
Last updated: 10 October 2026. General information, not legal advice.
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