Last updated: May 2026.
Check Registration And Transaction Records
Before considering any remedy, an MSME should keep its Udyam registration details, invoices, purchase orders, delivery proof, ledger records, and written communications in order.
Why The 45-Day Period Matters
Delayed payment disputes often turn on contractual terms, statutory timelines, and documentary proof of supply or service. The 45-day period is commonly relevant in MSME payment discussions, but each case should be checked against its documents.
For a supplier, the first step is not only to count days. It is also important to check when goods or services were accepted, whether any written objection was raised, whether the buyer admitted the balance, and whether the invoice terms are consistent with the purchase order or work order.
Facilitation Council Route
The MSME Facilitation Council process may involve conciliation and, where required, arbitration. The claim should clearly show the transaction, amount due, interest basis, and documents relied upon.
A concise claim record usually helps more than a large unsorted file. The Council or the opposite party should be able to understand the supplier status, buyer details, supply record, principal amount, payment history, due date and the correspondence relied upon.
Supplier-Side Preparation
A supplier should prepare an invoice-wise chart before deciding the next step. The chart may include invoice number, invoice date, goods or services supplied, amount, payment received, balance amount, last reminder, buyer response and the current outstanding position.
If several invoices are involved, separate admitted dues from disputed dues. This helps identify whether the issue is non-payment, quality objection, reconciliation dispute, delayed approval, or a broader commercial disagreement.
Buyer-Side Review
A buyer receiving an MSME claim or notice should review whether the supplier status, supply record, invoice amount, limitation position, delivery proof, quality objection, payment record and contractual terms are correctly stated. A response should be based on documents rather than general denial.
Documents To Keep Ready
- Udyam registration details.
- Invoices, purchase orders, and delivery records.
- Ledger statements and payment reminders.
- Email, WhatsApp, or written acknowledgement of dues.
- Proof of part-payment, deduction, debit note or reconciliation.
- Any notice, reply, conciliation record or pending Council communication.
Common Mistakes To Avoid
Common mistakes include filing without a clear invoice chart, mixing unrelated transactions, ignoring prior payments, sending only screenshots without context, delaying action despite limitation concerns, and failing to preserve written admissions before they are deleted or denied.
The better approach is to prepare a clean chronology, keep the communication trail intact and avoid sending confidential or privileged material until a consultation or formal engagement is confirmed.
Related Reading
For more detail, read the MSME delayed payment documents checklist and the focused page for an MSME recovery lawyer in Bihar.
References / Sources
- Relevant MSMED Act provisions, Udyam records, invoice documents and MSEFC procedure should be checked with the transaction record.
- This article is a general informational note and should be read with the actual documents, dates, forum rules and limitation position.