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 Facilitation Council for resolution via conciliation or arbitration.

 

The time taken is shorter than the normal courts. The structure of MSME payment dispute resolution is where it gives you an opportunity to gain what you have lost. Most of the time and energy saving is what is important.

 

Take Timely Action to Protect Your Business

For unpaid invoices, make sure they do not go unheeded. To take the Delayed payment Act MSME 2022 is a way to recover money owed to you and a way to safeguard company accountability in cash flow.

 

Location: Esplanade Mansion, Marx Engels Beethi Rd, Chowringhee North, Bow Barracks, Kolkata, West Bengal 700069, India

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