MSME ODR Portal: File a Delayed-Payment Case in 2026

If an MSME buyer has not paid you, file your delayed-payment case on the new MSME ODR Portal at https://odr.msme.gov.in (not on Samadhaan, which is now only a bridge). You need a valid Udyam Registration, the unpaid invoices, and the purchase order. The portal routes your case to your State MSEFC, which first tries conciliation and then moves to arbitration. You can claim compound interest at three times the RBI bank rate under the MSMED Act, 2006.

Short on time? Jump to the step-by-step filing process and the interest section below.

The MSME Online Dispute Resolution (ODR) Portal is the Ministry of MSME platform for delayed-payment disputes. It runs negotiation, conciliation, mediation, and arbitration online. Since 15 October 2025, all new delayed-payment references by micro and small enterprises are filed here, not on the older Samadhaan portal. Your case still reaches the same statutory body: your State or UT Micro and Small Enterprise Facilitation Council (MSEFC).

For years, suppliers filed delayed-payment complaints on the Samadhaan portal. The Ministry of MSME then issued an Office Memorandum (File No. L/AFI/RAMP/2022-ODR Initiatives, dated 03 October 2025) directing that, from 15 October 2025, all new references move to the MSME ODR Portal at https://odr.msme.gov.in.

Samadhaan has not vanished. It now acts as a bridge: it migrates older cases to the ODR Portal and redirects new users there. So if you start a fresh case today, you use the ODR Portal. If you have a legacy case filed before 15 October 2025, you track it through the old system.

The law behind all of this is the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. Section 15 caps the payment period at 45 days from the day the buyer accepts your goods or services. If you and the buyer agreed nothing in writing, the limit is 15 days. Cross that line and the buyer owes you interest, by force of law, even if your contract says otherwise.

1. Confirm your Udyam Registration. You must be a registered micro or small enterprise on the Udyam portal to file a delayed-payment case before the MSEFC. Check or fix your registration at https://udyamregistration.gov.in before you start. Keep your Udyam Registration Number handy.
2. Register on the MSME ODR Portal. Go to https://odr.msme.gov.in and create your applicant account. Use the email and mobile number linked to your Udyam profile so the details match.
3. Upload your invoices and purchase order. Add each unpaid invoice, the purchase order or work order, proof of delivery or acceptance, and any reminder emails. Enter the buyer name, the amount due, and the date each invoice fell overdue. Accurate dates drive your interest claim.
4. Let the MSEFC conciliation-then-arbitration clock run. Once filed, your case goes to your State MSEFC. Under Section 18 of the MSMED Act, the Council first attempts conciliation between you and the buyer. If conciliation fails, the Council takes up the dispute for arbitration itself or refers it to an ADR institution, and the Arbitration and Conciliation Act, 1996 then applies. Every reference is meant to be decided within 90 days.

Section 16 of the MSMED Act is your strongest lever. It says the buyer must pay compound interest with monthly rests at three times the bank rate notified by the Reserve Bank, from the appointed day (the day payment became due).

Three points matter for your claim:

• Rate. It is 3 times the RBI bank rate, not a flat number. The bank rate moves, so check the current RBI bank rate when you compute your figure. At a 6.5 percent bank rate, the delayed-payment rate works out to about 19.5 percent per annum.
• Compounding. Interest is compounded monthly, so the longer the buyer delays, the faster the amount grows.
• Non-waivable. This interest is due by statute even if your contract waived it. The buyer also cannot claim this interest as a deductible business expense.

You do not calculate and “bill” this interest yourself for enforcement. You claim it in your ODR application, and the MSEFC award fixes the principal plus statutory interest. Note: there is also an income-tax angle for buyers under Section 43B(h) of the Income-tax Act, which disallows the buyer a deduction for sums not paid to an MSE within the time limit. That tax pressure often gets buyers to settle.

Dr. Shrawan Kumar Pathak runs a small printing unit in Lucknow. A mid-size buyer accepted ₹3,80,000 of work in March but paid nothing for four months. His contract gave 30 days to pay, so the 45-day cap under Section 15 applied. After two ignored reminders, he checked his Udyam Registration, logged in to the MSME ODR Portal, and filed with his three invoices, the work order, and the delivery proof. The case went to his State MSEFC, which opened conciliation. Faced with the ODR record and the running 3x-bank-rate interest, the buyer cleared the principal during conciliation rather than risk an award and a tax disallowance.

No. Cases filed on Samadhaan before 15 October 2025 stay in the existing system and are tracked there or migrated by the Ministry. Only new references go to the MSME ODR Portal. Do not file the same dispute twice. If you are unsure of your case status, check the Samadhaan portal and, if needed, file an RTI with your State MSEFC asking for the current stage of your reference.

Yes. The MSMED Act applies to delayed payments by any buyer, including public-sector undertakings and government departments, as long as you are a registered micro or small enterprise and the dues fall under the Act. The MSEFC process is the same. PSUs are also expected to report MSME dues, which strengthens your position.

Compound interest. Section 16 of the MSMED Act expressly says compound interest with monthly rests at three times the RBI bank rate. This is stronger than ordinary contractual interest, which is usually simple. Because it compounds monthly from the due date, the amount can grow quickly, which is why many buyers settle once a case is filed.

An MSEFC award is enforceable like an arbitral award under the Arbitration and Conciliation Act, 1996. If the buyer does not pay, you can move the civil court to execute the award. A buyer challenging the award must usually deposit 75 percent of the awarded amount first, which protects you. Keep every document and the award copy for execution.

No. The portal is designed for self-filing by the supplier. You can complete the application yourself with your Udyam number, invoices, and purchase order. A lawyer can help at the arbitration stage if the dispute is large or contested, but the initial filing and conciliation do not require one.

There is no government filing fee to lodge a delayed-payment reference before the MSEFC; the statutory remedy is meant to be accessible to small suppliers. You only bear your own costs, such as document preparation or any lawyer you choose to engage later. Verify the current process on https://odr.msme.gov.in before filing.

• Confirm your Udyam Registration is active at https://udyamregistration.gov.in.
• Gather your unpaid invoices, the purchase or work order, and proof of delivery or acceptance.
• Note the exact date each invoice crossed the 45-day mark, so your interest claim is accurate.
• Create your account on the MSME ODR Portal at https://odr.msme.gov.in and start the application.
• If you suspect the MSEFC is sitting on an older case, draft an RTI to your State MSEFC asking for its current stage using the AI RTI Drafter.

After filing, watch your case move through conciliation and, if needed, arbitration. If your State MSEFC delays beyond the 90-day expectation under Section 18, you can press it. File an RTI application with the MSEFC or the State MSME Commissioner asking for the date of reference, the conciliation dates, and the reason for any delay. RTI is a legitimate way to make a stuck Council move.

For a deeper walkthrough of the RTI route, read The RTI Playbook. To draft and escalate, use the AI RTI Drafter and the First Appeal Builder.

• MSME Samadhaan portal notice directing new filings to the ODR Portal: https://samadhaan.msme.gov.in
• MSME ODR Portal: https://odr.msme.gov.in
• Ministry of MSME Office Memorandum File No. L/AFI/RAMP/2022-ODR Initiatives, dated 03 October 2025 (ODR mandatory from 15 October 2025)
• MSMED Act, 2006, Sections 15, 16, 18 and 23
• Udyam Registration portal: https://udyamregistration.gov.in

• The RTI Playbook
• AI RTI Drafter
• First Appeal Builder
• PIO Reply Checker
• RTI Timeline Tracker