How the MSME Samadhaan Mechanism Helped Our Client Recover Long-Pending Dues

-Blog by Pallavi Desai

ArticleEvery individual needs financial guidance at some point. For entrepreneurs, this becomes even more important because their business is governed by multiple laws and compliance requirements. This is where a Chartered Accountant makes a real difference. A CA is expected to understand the legal and regulatory framework that affects clients, even if those laws aren’t covered in the academic syllabus.

A recent case at our office showed how this knowledge can directly help a client who is struggling with an unresolved issue. 1

Background

One of our clients had been facing challenges in recovering dues from a customer. Despite repeated calls, messages, and emails, there was no cooperation. The customer even responded rudely, saying the client could “file a complaint wherever you want.”

At this point, the client reached out to us for help.

Exploring the MSME Redressal Mechanism

After reviewing the matter, we found that the client was registered as an MSME and qualified to file a complaint through the MSME Samadhaan Portal. This government platform assists MSMEs in recovering delayed payments

Why MSME Samadhaan Works

The MSME Development Act and the functioning of MSME Facilitation Councils (MSEFC) provide several strong benefits:

Quick processing: Most cases move within 90 days.
Statutory interest: Delayed payments attract interest at three times the RBI bank rate.
Buyer accountability: Notices from the Council prompt buyers to respond and settle.
No filing cost: The portal does not charge any fees.
Legal backing: The MSME receives statutory protection and enforcement support.
Public disclosure: Non-compliant buyers may have their details published on the portal.

MSEFCs usually have 3 to 5 members, including Directors of Industries, MSME Association representatives, and members from financial institutions.

Filing the Complaint

We assisted the client through the entire filing process:

Visit samadhaan.msme.gov.in
Select “File a Complaint”
Register using the Udyam Aadhaar Number
Enter buyer details, invoices, outstanding amount, and service description
Upload supporting documents and submit

Documents Submitted

The officer initially asked for:

Sales invoices
Bank statements showing non-receipt
GST returns

After verification, additional evidence was also requested:

Call records
Message screenshots
Follow-up emails

Together, these clearly established that the client was a genuine complainant.

Action by the MSME Facilitation Council

Once accepted, the Council issued a notice to the buyer with a 15-day response window. The first notice was ignored, so the Council issued a second notice.

If a buyer does not respond, the case typically moves to conciliation and then arbitration. The Council can pass an enforceable award directing payment along with penalties.

Outcome

After receiving the second notice, the buyer immediately contacted our client. They preferred to settle the matter privately instead of facing formal proceedings under the MSMED Act.

Within a few days, our client received the full and final payment. A long-pending issue was finally resolved.

Conclusion

This case highlights how effective the MSME grievance mechanism can be. It also reinforces the responsibility we carry as professionals. Clients trust us to guide them through complicated legal processes, and we do everything we can to protect their rights and interests.

At AccuFinTech Consultancy, our goal is to provide reliable, end-to-end support so individuals and entrepreneurs never feel alone while dealing with financial or compliance challenges.