During this COVID-19 crisis recession period, delayed or not payment has become a common issue for Indian traders. The delayed payment issue has become more critical especially when the automotive sector is down. To solve this issue the Ministry of Micro, Small & Medium Enterprises has launched a new forum called MSME SAMADHAAN for the recovery of delayed payment.
This forum helps to recover MSME Delayed Payments Complaints because the MSME sector is the backbone of the Indian economy and plays a vital role to boost GDP. The MSME sector occasionally faces issues like where big companies outsource their work to MSME but not make payments on time and this creates a huge loss to MSME.
MSME SAMADHAAN has been introduced after taking into consideration MSME traders' grievances.
Let's check the process on how to recover delayed payments through MSME SAMADHAAN forum.
First, we need to understand which sectors are eligible for the MSME sector category.
Production sector: All the organizations whose investment is less than 25 lakh in plant & machinery will fall in the Micro category. The sectors whose investment in plant & machinery is in between 25 lakh to 5 crore will come under the Medium category.
Service Sector: You will fall in the Miro category if your investment is less than 10 lakh and if your investment is between 10 lakh to 2 crore, you will come under the Medium category.
The organizations which come under the Micro or Medium category can only take the benefits of MSME SAMADHAAN forum to recover delayed payments. If your investment is more than 5 crore under the above-mentioned sectors, then you can't recover your payments under this scheme.
Exception: Under this scheme, only those plant & machinery investment will be considered that are directly involved in production or manufacturing. Generators, pollution control equipment that is not directly involved in the production process will not be considered. Under this exception, if your investment falls below 5 crores after excluding indirect machinery, then you are to take the benefits of MSME SAMADHAAN.
Documents required to file MSME Payment Complaint under this scheme.
Udyog Aadhaar Card: You must have your Udyog Aadhaar Card to file a complaint under this forum. If you don't have you can easily create it within 10 minutes with the Government website www.udyogaadhaar.gov.in. To create Udyog Aadhaar Card you need to fill your company's basic details as well as you are required to upload the last 3 years' returns of your company. You will get your Udyog Aadhaar Card after filling all the required details of your company.
After getting your Udyog Aadhaar Card you can file your case under the MSME website. Apart from this document you also have to fill details of your purchase order and invoice.
What are other options if the concerned party don,t make payment after filing MSME complaints
In case the other party doesn't make payment after 15 days of intimation notice, you can take your case to MSME Council. For filing a complaint in the MSME council, you need to send all your documents like- Udyog Aadhaar Card, purchase order, and invoice with RS 3500 demand draft.
After receiving all the documents, MSME Council will send notice to summon both the parties. MSME Council first convinces both parties for mutual compromise and in case of non-compromise, the case is transferred to Arbitration. The Arbitration proceedings undergo Arbitration Conciliation ACT and after hearing both parties' cases if the arbitrator found that the petitioner's claim is valid, then the case awarded to the petitioner favor.
The petitioner can also claim 3 times of bank rate interest from the respondent as well as compensation and damages.
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