Скачать или смотреть RECOVERY CASE UNDER MSME SAMADHAAN OR COMMERCIAL SUIT? | DIFFERENCE | DELAYED PAYMENTS | RECOVERY

When facing delayed payments, there are multiple legal routes to recover dues, but two primary options stand out:

filing a case under the MSME Samadhaan Delayed Payment Monitoring System or opting for a Commercial/Civil/Summary Suit.

Each has unique advantages, but which is the best choice for you? In this video, we’ll explore the key differences, benefits, and processes for each.

Both MSME Samadhaan and Commercial Suits are civil proceedings that can result in a favorable Award or Decree for the Claimant/Plaintiff. Both typically start with conciliation or mediation—MSME Samadhaan uses MSEFC facilitation, while Commercial Suits involve pre-suit mediation by the Mediation Center. However, MSME Samadhaan holds distinct advantages:

1) High Interest Awarded: Under Section 16 of the MSMED Act, 2006, MSME Samadhaan awards three times the bank repo rate in monthly compounded interest, while Civil Suits usually offer between 8-12% simple interest.

2) Quick Resolution: The MSMED Act aims for resolution within 90 days, though most cases take 6-9 months. Civil/Commercial Suits, however, may extend from 1-1.5 years to even 5-7 years in some courts.

3) Appeal Requirements: As per Section 19 of the MSMED Act, a Buyer filing an appeal must deposit 75% of the awarded amount. This requirement often deters appeals, increasing the likelihood of payment to the supplier.

4) Low Statutory Fees: MSME Samadhaan typically involves minimal fees, unlike the substantial ad valorem fees associated with Civil/Commercial Suits.

5) Simplified Proceedings: MSME cases are straightforward, often manageable without legal representation, making it cost-effective. Civil suits, however, require an Advocate, adding to the Supplier/Claimant’s expenses.

6) Efficient Award Execution: MSEFC Awards can be executed directly through the District Collector, while Civil Decrees require a separate execution petition.

From the above, it can easily be understood that filing Recovery Cases under MSME Samadhaan is a more effective and efficient way to recover the dues.

If you have any questions about delayed payments or legal actions under MSME Samadhaan you can Contact our team at the details given below -

MSME Legal Help - Anmol Bakshi, Advocate. MSME Expert.
Website - www.bakshiandassociates.com, www.msmelegalhelp.com

Mobile - 7982637108, 9873750515, 9811680103, 9811099501 and 9953030208.

E-mail ID - [email protected], [email protected], [email protected], anmolbakshiandassociates.com.

Jai Guru Ji. Shukrana Guruji.

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