My MSME unit in Purnia is facing delayed payments from a buyer, what legal remedy do I have?

Detailed Legal Analysis

Delayed payments to micro and small enterprises are addressed under the MSMED Act, 2006, and the Bihar Rent Control Act 2017 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 Purnia.

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 Patna 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.