Guides · MSME
The MSE Facilitation Council, explained
The Micro and Small Enterprise Facilitation Council — the MSEFC — is the body that settles delayed-payment disputes under the MSMED Act. It is where a micro or small supplier's claim against a slow-paying buyer is heard.
What the Council does
When a micro or small supplier is not paid within the time the MSMED Act allows, the dispute can go to the Facilitation Council, which takes up the matter between supplier and buyer. It is the forum built into the Act for exactly this kind of claim.
The Council can move a dispute through conciliation first and, if that does not resolve it, through arbitration under the Act.
How a case reaches it and what it can award
A supplier commonly reaches the Council by filing on the MSME Samadhaan portal, which routes the application to the relevant Council. The Council can decide the amount due together with the statutory interest the Act provides — the compound interest at three times the RBI bank rate that runs from the appointed day.
Because the award turns on the facts of the supply and the dates, the supplier's records are what carry the claim.
How Lekha keeps the facts ready
Lekha keeps the dates, documents, and overdue age per bill, so the acceptance date, due date, and outstanding amount a Council case rests on are already recorded.
Lekha records and tracks; it does not represent you or compute the statutory interest — that stays with you, your accountant, and the calculator.
Questions
- What is the MSE Facilitation Council?
- The Micro and Small Enterprise Facilitation Council — the body under the MSMED Act that settles delayed-payment disputes between micro or small suppliers and their buyers.
- How does a case reach the Council?
- Commonly by filing on the MSME Samadhaan portal, which routes the application to the relevant Facilitation Council for conciliation and, if needed, arbitration.
- What can the Council award?
- The amount due together with the statutory interest the Act provides — compound interest at three times the RBI bank rate, running from the appointed day.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.