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Statutory Recovery Remedies

MSME Payment Recovery Remedies

Enforcing 45-Day Statutory Rights & Compound Interest Under MSMED Act

Under Section 15 & 16 of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006, buyers are mandated to settle MSME supplier invoices within 45 days. Delayed payments automatically attract compound interest at three times the RBI bank rate.

Why MSME Samadhaan Process Works:

  • Statutory 45-day invoice settlement period override regardless of conflicting buyer contract terms.
  • Compulsory compound interest with monthly rests at 3x RBI bank rate.
  • Fast-track conciliation and arbitration before the Micro & Small Enterprises Facilitation Council (MSEFC).