Delayed Payments in MSMEs: What the Law Says and How You Can Act
If you manage a small business, you know how laborious the job gets for the contractor once the work is done. It is draining and even more so, disastrous for the cash flow. There is the case law of the MSME delayed payment that aims to safeguard business. What the Law Says and How It Protects You As per Delayed payment act MSME, 2022, a seller is expected to make payment, in full, within a period of 45 days. If they do not, you have a right to liquidate the interest of the delayed payment. This is not a lost case, courts have upheld a myriad of MSME delayed payment case laws. Most of the MSME delayed payment case laws cite that payment cannot be delayed after the acceptance of services or goods by buyers. How to Resolve Payment Disputes Effectively What options do you have when the payment is not done? This is the case of MSME payment dispute resolution. You can submit a complaint in the MSME Samadhaan portal, where the case is taken by the Facilitati...