Government of Tamil Nadu
Micro, Small and Medium Enterprises Department
Commissionerate of Industries and Commerce
தொழில் வணிக ஆணையரகம்

  1. Related Provision

The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions of Delayed Payment to Micro and Small Enterprise (MSEs) vide Section 15- 24. 

The Government of Tamil Nadu have constituted four Regional Micro and Small Enterprises Facilitation Councils(MSEFC) at Chennai , Tiruchirappalli, Madurai and Coimbatore to facilitate speedy settlement of the payments of dues with respect to the goods supplied to major industrial undertakings by the micro and small enterprises in accordance with the Micro, Small and Medium Enterprises Development Act 2006 vide Section 20 and 21.

  1. Nature of assistance

MSEFC of the State after examining the case filed by MSE unit will issue directions to the buyer unit for payment of due amount along with interest as per the provisions under the MSMED Act 2006.

  1. Who can apply

Any Micro or small enterprise having valid Udyog Aadhar Memorandum (UAM) can apply.

  1. Salient Features
  1. The buyer is liable to pay compound interest with the monthly rests to the supplier on the amount at the three times of the bank rate notified by RBI in case he does not make payment to the supplier for his supplies of goods or services within 45 days of the acceptance of the goods/service rendered. (Section 16)
  2. The Government of Tamil Nadu has notified vide G.O(MS) No. 39, Micro, Small and Medium Enterprises(F) Department, dated: 07.07.2017 the Revised Rules of the Tamil Nadu Micro and Small Enterprises Facilitation Council Rules,2017.
  3. Every reference made to MSEFC shall be decided within a period of ninety days from the date of making such a reference as per provisions laid in the Act.
  4. If the Appellant (not being the supplier) wants to file an appeal, no application for setting aside any decree or award by the MSEFC shall be entertained by any court unless the appellant (not being supplier) has deposited with it, the 75% of the award amount. (Section 19)
  5. Implementation


The provisions under the Act are implemented by MSEFC chaired by Industries Commissioner and Director of Industries and Commerce in Tamil Nadu. The MSE Facilitation Council holds meetings regularly and delayed payment cases are decided by the Councils within a period of 90 days as stipulated in the MSMED Act, 2006.

  1. MSME Samadhaan Portal - Ease of filing application under MSEFC, an Initiative from Office of DC(MSME), M/o MSME

The Office of DC-MSME has taken an initiative for filing online application ( by the supplier MSE unit against the buyer of goods/services before the concerned MSEFC of his/her State/UT. These will be viewed by MSEFC Council for their actions. These will be also visible to Concerned Central Ministries, Departments, CPSEs, State Government, etc for pro-active actions.