My MSME unit in New Delhi is facing delayed payments from a buyer, what legal remedy do I have?
PO Asked by Pooja Agarwal from India
Quick Answer
Delayed payments to micro and small enterprises are addressed under the MSMED Act, 2006, and the Delhi Rent Control Act 1958 MSME policy of your state.
Detailed Legal Analysis
Delayed payments to micro and small enterprises are addressed under the MSMED Act, 2006, and the Delhi Rent Control Act 1958 MSME policy of your state. A buyer is liable to pay interest at three times the bank rate for delayed payment beyond 45 days from the date of acceptance of goods or services in New Delhi.
You can file a reference with the Micro and Small Enterprises Facilitation Council, which has the power to decide the dispute through conciliation and arbitration. The Delhi High Court has held that the MSMED Act is a special law and overrides the limitation and arbitration provisions of general laws.
The buyer cannot raise disputes as a counterclaim beyond what is acknowledged in writing. The MSME must register on the Udyam portal to avail the benefit of the Act.
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.