The Ministry of Micro, Small and Medium Enterprises (MSMEs) in India has launched the MSME Samadhaan scheme to address the issue of delayed payments by government and public sector enterprises (PSEs) to MSMEs. The scheme provides a simple and efficient mechanism for MSMEs to seek redressal of their grievances without having to go through lengthy legal procedures. This blog provides a step-by-step guide to filing a payment claim under the MSME Samadhaan scheme.
Step 1: Eligibility check
Before filing a payment claim under the MSME Samadhaan scheme, the MSME needs to check its eligibility. As per the scheme, an MSME is eligible to file a payment claim if the buyer is a government agency or a public sector undertaking and the payment has been delayed beyond 45 days from the due date of payment. The MSME needs to ensure that it has all the relevant documents, such as invoices, delivery challans, purchase orders, and other supporting documents, to substantiate its claim for payment.
The MSME Samadhaan scheme is a payment dispute resolution mechanism for micro, small, and medium enterprises (MSMEs) in India who face delayed payments from government agencies and public sector enterprises (PSEs). To be eligible to file a payment claim under the scheme, the MSME needs to satisfy the following criteria:
- The MSME must be registered as per the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. The registration certificate must be valid at the time of filing the payment claim.
- The buyer must be a government agency or a public sector undertaking. Private companies are not covered under the scheme.
- The payment for the goods or services supplied by the MSME must have been delayed beyond 45 days from the due date of payment. The due date of payment is calculated from the date of acceptance of the goods or services or the date of deemed acceptance, as per the provisions of the MSMED Act, 2006.
- The MSME must have submitted all the required documents to support its claim for payment, such as invoices, delivery challans, purchase orders, and other relevant documents.
It is important to note that the MSME Samadhaan scheme is not applicable in the following cases:
- Where the payment dispute is already pending before any court, tribunal, or arbitrator.
- Where the payment dispute has been settled mutually between the MSME and the buyer.
- Where the payment dispute arises from the supply of goods or services by the MSME to a private company.
- Where the payment dispute arises from the supply of goods or services by the MSME to a buyer who is not a government agency or a public sector undertaking.
- Where the payment dispute arises from the supply of goods or services by the MSME to a buyer who is not covered under the MSMED Act, 2006.
Step 2: Registration on the MSME Samadhaan portal
The MSME needs to register on the MSME Samadhaan portal to file a payment claim. The registration process is simple and requires the MSME to provide its basic information, such as name, address, contact details, and the nature of the business. Once the registration is complete, the MSME can log in to the portal using its registered email id and password.
The MSME Samadhaan scheme is an initiative by the Ministry of Micro, Small and Medium Enterprises (MSMEs) to provide a platform for micro, small and medium enterprises (MSMEs) to file payment claims against government agencies and public sector enterprises (PSEs) for delayed payments. The scheme aims to provide quick and effective resolution of payment disputes, with the help of an online portal.
To avail the benefits of the MSME Samadhaan scheme, the first step is to register on the portal. Here is a step-by-step guide on how to register on the MSME Samadhaan portal:
Step 1: Visit the official MSME Samadhaan portal (https://samadhaan.msme.gov.in/) and click on the ‘Register Now’ button.
Step 2: You will be redirected to the registration page. Enter your Aadhaar number, PAN number, and GSTIN (if applicable).
Step 3: After entering the details, click on the ‘Generate OTP’ button. An OTP will be sent to your registered mobile number.
Step 4: Enter the OTP in the provided field and click on the ‘Verify OTP’ button.
Step 5: Next, you need to fill in your personal and business details. This includes your name, email ID, mobile number, business name, type of organization, and registration number.
Step 6: Once you have entered all the details, click on the ‘Submit’ button.
Step 7: After successful submission of the registration form, an acknowledgement will be generated. You can download the acknowledgement for future reference.
Step 8: You will also receive a confirmation email and SMS on your registered email ID and mobile number.
After completing the registration process, you can log in to the portal and file your payment claim. To file a payment claim, you need to provide details such as the name of the buyer, the amount due, and the reason for the delay in payment. You also need to upload supporting documents such as invoices, delivery challans, purchase orders, and other relevant documents.
Step 3: Filing the payment claim
Once the MSME has logged in to the MSME Samadhaan portal, it needs to file the payment claim. The MSME needs to provide the details of the buyer, such as name, address, and contact details, along with the details of the delayed payment, such as the amount, date of acceptance of goods or services, and the due date of payment. The MSME also needs to upload the necessary documents to support its claim for payment, such as invoices, delivery challans, and purchase orders.
The MSME Samadhaan scheme is designed to help Micro, Small and Medium Enterprises (MSMEs) resolve their delayed payment issues. If you want to file a payment claim under this scheme, you can follow the below steps:
- Check the eligibility criteria: Ensure that your business falls under the category of MSME as per the definition provided by the Government of India. Also, make sure that the payment is overdue for more than 45 days.
- Prepare the required documents: You will need to prepare a few documents such as the invoice copy, delivery challan, and other relevant documents related to the transaction.
- Register on the MSME Samadhaan portal: Go to the MSME Samadhaan portal and register as a supplier. You will need to provide your business details, bank account details, and contact information to complete the registration process.
- File a complaint: Once you are registered on the portal, you can file a complaint against the buyer who has delayed the payment. Provide all the necessary details such as the amount of the invoice, date of the invoice, and the reason for the delay.
- Follow up: After submitting the complaint, you can track the status of your complaint on the portal. If the buyer agrees to pay the amount, the payment will be made directly to your bank account.
- Take legal action: If the buyer does not respond or refuses to pay, you can take legal action to recover the payment.
Remember, the MSME Samadhaan scheme is a government initiative to help MSMEs recover their overdue payments, and you can utilize this scheme to get your rightful payment.
Step 4: Verification of documents
The concerned Micro and Small Enterprises Facilitation Council (MSEFC) verifies the documents submitted by the MSME to support its claim for payment. The MSEFC can seek additional information or documents if required.
To verify the documents for the MSME Samadhaan scheme, you can follow these steps:
- Go to the MSME Samadhaan portal: Visit the MSME Samadhaan portal (https://samadhaan.msme.gov.in/) and log in to your account as a supplier.
- Upload the documents: Upload the required documents such as the invoice copy, delivery challan, and other relevant documents related to the transaction.
- Wait for verification: The authorities will verify the documents to ensure that they are valid and meet the requirements of the MSME Samadhaan scheme.
- Track the status: You can track the status of your documents on the portal. If the documents are verified, you can proceed with filing a complaint against the buyer who has delayed the payment.
- Update the documents: If the documents are not verified, you may need to update them and submit them again.
- Seek assistance: If you face any issues during the verification process, you can seek assistance from the MSME Samadhaan helpline or contact the authorities for further guidance.
Remember, the verification of documents is a crucial step in filing a complaint under the MSME Samadhaan scheme. Ensure that all the required documents are valid and meet the requirements of the scheme to increase your chances of getting a favorable outcome.
Step 5: Response from the buyer
Once the documents are verified, the MSEFC forwards the payment claim to the buyer for their response. The buyer has to respond to the payment claim within a specified period. The buyer can accept the claim or dispute it with valid reasons.
Step 6: Settlement through conciliation
If the buyer accepts the claim, the MSEFC facilitates conciliation between the MSME and the buyer for settlement of the claim. The MSEFC can appoint a conciliator if required.
Step 7: Settlement through arbitration
If the conciliation fails, or the buyer disputes the claim, the MSEFC refers the matter to arbitration. The arbitration proceedings are conducted as per the provisions of the Arbitration and Conciliation Act, 1996.
Step 8: Award by arbitrator
The arbitrator issues an award within six months from the date of appointment. The award is binding on both parties and can be enforced as a decree of a civil court.
Step 9: Review by MSEFC
If either party is dissatisfied with the award, they can apply for a review by the MSEFC within thirty days from the date of receipt of the award.
Step 10: Enforcement of award
Once the award becomes final and binding, the MSME can enforce it as a decree of a civil court.
In conclusion, the MSME Samadhaan scheme is a helpful initiative by the Government of India to assist Micro, Small and Medium Enterprises (MSMEs) in recovering their overdue payments.