How to file a delayed-payment case on the MSME ODR portal (formerly Samadhaan)

Samadhaan has moved to the MSME ODR portal

For years, micro and small suppliers filed delayed-payment cases on MSME Samadhaan. The Samadhaan site now states: "All new delayed payment applications will now be filed at the MSME ODR Portal". New cases go to odr.msme.gov.in, run by the Ministry of MSME under its scheme for online dispute resolution of delayed payments. Samadhaan's FAQs are still a useful guide.

The portal is not a court and it is not a collection agency. It is a way to put your delayed-payment claim in front of the Micro and Small Enterprises Facilitation Council (MSEFC) of your state, which has powers under Section 18 of the MSMED Act to settle the dispute.

Most suppliers reach this stage after friendly reminders, phone calls and a formal demand letter have not worked. No legal notice is needed before filing (Samadhaan FAQ, Q.19), but that order still helps. A buyer who sees a clear paper trail of polite follow-ups is more likely to settle quickly, and the Council will see that you tried.

Are you eligible?

Before you open the portal, check these points.

1. You are a micro or small enterprise registered on Udyam. The ODR scheme is for Udyam-registered micro and small enterprises (ODR Scheme Guidelines, para 7.1). Medium enterprises are not covered by the delayed-payment chapter (NBCC v. State of West Bengal, Supreme Court, 2025).
2. You are in manufacturing or services, not trading. Retail and wholesale traders are excluded from the MSMED Act's delayed-payment provisions by the Ministry of MSME (Office Memoranda dated 2 July 2021 and 1 September 2021), and the Samadhaan FAQs exclude trading units (NIC codes 45, 46 and 47). Councils reject such applications in practice; whether a memorandum can narrow the Act is legally untested.
3. The payment is actually delayed under the MSMED Act. The buyer has crossed the agreed due date, which cannot be more than 45 days from acceptance, or 15 days from acceptance if there is no written agreement. Our 45-day rule explainer walks through the dates.
4. Your registration date. The portal FAQs still expect your Udyam registration to predate the disputed invoice. The Supreme Court has questioned whether this is required (NBCC, 10 January 2025) and referred the issue to a larger bench, which has not yet ruled. If you registered after the supply, take legal advice before filing.

Time limits

Do not sit on old dues. The Limitation Act applies to the arbitration stage, which means claims older than three years can be time-barred there (Silpi Industries, Supreme Court, 2021). It does not apply to conciliation, so even an old claim can be referred to conciliation and settled (Sonali Power Equipments v. Chairman, MSEB, Supreme Court, 17 July 2025), but a buyer who refuses to settle can then raise limitation in arbitration.

Documents to keep ready

Scan everything as clear PDFs before you start. The form is easier when you are not hunting for papers halfway through.

A work order is expected; if the order was oral, the Samadhaan FAQs say an affidavit can be given instead (Q.10). If the buyer raised a written objection about quality or quantity, include how and when you resolved it. A rejection of goods must be genuine and made within 15 days of delivery (Q.22).

Filing on odr.msme.gov.in

The portal's screens may change, but the application asks for the same core information (ODR Scheme Guidelines).

1. Open the portal

   Go to odr.msme.gov.in and choose the option to file a new delayed-payment application as a micro or small enterprise.

2. Log in with Udyam

   Enter your Udyam registration number. Your seller details are auto-filled from Udyam, so if your mobile number or address is outdated, update your Udyam record first.

3. Fill in buyer details

   Enter the buyer's legal name, type (for example private company, central government, state government or public sector undertaking), full address, email and phone. Use the exact name on your invoices.

4. State the claim

   Give brief facts, list each unpaid invoice with its number, date, amount and acceptance date, record payments received, and state the amount due with interest. You can claim interest alone if the principal has already been paid late (Samadhaan FAQ, Q.20).

5. Upload, sign and submit

   Attach your documents, read every field once more, sign and submit. Save or screenshot the application number.

After submission you can track the status on the same portal using your application number.

Fees

Under the ODR scheme, the Ministry of MSME pays up to ₹4,000 per enterprise towards Facilitation Council fees (ODR Scheme Guidelines, para 6.4). The scheme runs from 2023-24 to 2026-27, so check the portal for the position when you file.

What happens after you file

Your application goes to the MSEFC of the state where your enterprise is located, wherever the buyer is. Under Section 18 of the MSMED Act as currently in force, the process runs like this:

• Scrutiny and notice. The Council reviews the application and the buyer is informed.
• Conciliation. The Council conducts conciliation itself or refers it to an institution. Both sides try to reach a settlement.
• Arbitration. If conciliation fails, the Council can take up arbitration itself or refer it to an arbitration institution. The result is an award that is binding on the parties. An arbitration clause in your contract does not stop you using the Council route (Gujarat State Civil Supplies v. Mahakali Foods, Supreme Court, 2022).
• Timeline. Section 18(5) says the reference should be decided within 90 days of being made.

If a buyer wants to challenge an award in court, Section 19 requires it to first deposit 75% of the awarded amount, and the court may release part of it to you. This makes it harder for buyers to delay simply by appealing.

Realistic expectations

Be honest with yourself about what the Council route can and cannot do.

• It often prompts payment. Many buyers, especially larger companies and public sector units, prefer to settle once a formal case exists.
• It is not instant. The 90-day timeline is a statutory target, and Councils in different states work at different speeds. Some cases take longer.
• Disputed invoices are harder. If the buyer says the goods were defective, expect the Council to look closely at your delivery proof and correspondence.
• The relationship changes. A filed case is a clear signal. For a buyer you want to keep, try a settlement conversation and a formal letter first.

Before you file, try the ladder

The Council route works best as the last rung, not the first. Udhaar Wapas walks each overdue invoice through reminders, a concierge call, an optional settlement and a formal letter, then prepares a clean document pack if you decide to file. Read more on our compliance page, or draft a letter now with the demand letter generator.