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MSME Supplier Recovery

Aug 19
1 min read

Most small suppliers who come to us have already lost months waiting. They assumed the buyer held all the cards. They had no written contract, no formal agreement, just a purchase order, some emails, and work they had delivered in good faith.


What they did not know is that the law was already on their side.


Section 18 of the MSMED Act creates a dedicated dispute resolution mechanism that most buyers are not eager to discuss, and most suppliers do not know exists. Filing on the Online Dispute Resolution Portal costs nothing. Compound interest runs at three times the RBI bank rate from the day the payment was due.


This carousel breaks down the full process: how to file, what happens at conciliation, what arbitration under the MSEFC looks like, how the 90-day timeline works in practice, and what it actually takes for a buyer to challenge an award.


At Perennial Chambers, MSME dispute resolution is a core part of what we do. If you are sitting on a delayed receivable, feel free to reach out.



 
 
 

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