Your client is withholding money from your end. The dues have been pending for several weeks. Reminders aren't working either. The unpaid balance is now impacting salary payments, new POs and vendor payments. One person told you to initiate an MSME case. Someone else suggested initiating arbitration. Another suggested serving a legal notice to the other party. So who do you trust? And more importantly do you have the right MSME lawyer handling your case? Well, this is what you should know. MSME disputes could range from unpaid dues, breach of contract, PO related, refusal of goods, rejection of quality claims, claiming interest on delayed payment. Arbitration clauses. Jurisdiction over the area. Referencing to MSEFC. Or contesting an award. So any advocate who practises in this field shouldn't only know the bare minimum. Here are some of the things you should know or question when you are hiring a lawyer to deal with your commercial disputes. As per BK Singh Advocate always ask your advocate one question first. What is my problem? You may have an invoice which is unpaid. There are several factors which come into play here. It all depends upon the registration of your enterprise. Supply date, acceptance of goods, date of credit and correspondence between the buyer and seller. Purchase orders, rejection of quality etc. This rule can be applied to any place. Be it in Delhi, Ghaziabad, Noida, Gurgaon, Faridabad, Mumbai, Pune, Bangalore, Hyderabad, Chennai, Kolkata, Ahmedabad, Lucknow, Jaipur or anywhere. You should know what your legal standpoint is before taking action. Always leave your appointment knowing more than what you went in with. This can also help you determine what type of case your dealing with and what documentation will be required. This is why you should question your advocate when hiring one for your MSME dispute. Many time a MSME case will arise when you're running low on funds. You might have paid GST, employees, travelling, material cost etc. But the buyer hasn't cleared their due from your end. If you belong to the category of a micro or small enterprise then there are certain laws in place to protect you. There are 24 sections in place which deals with delay in payments to micro & small enterprises. From section 15 to 24. The act mentions that delay in payments shouldn't be more than 45 days from date of acceptance or deemed acceptance of supply. Interest is compounded at monthly rests which is three times of bank interest as notified by the Reserve Bank of India. Of course not all unpaid invoices will yield you results but there is always something to work with. It depends on your case and what you can prove legally. You may need to check the validity of your registration. Time period and various documents which were exchanged between both parties. According to the ministry of MSME. As on 15th october 2025 we can initiate our delayed payment cases on the MSME ODR portal. Alongside this we can negotiate or mediate and take forward to arbitration as well. Which falls under the delayed payment mechanism. Therefore it's essential to hire an advocate who knows how to deal with MSME cases and also how to deal with your particular type of case. At BK Singh Advocate we deal with many different types of MSME Law cases. Here are some information to note before talking to an MSME lawyer. This is probably the first question you should ask. Know if your advocate has handled MSME cases before or if they have initiated any cases towards the MSEFC. Maybe commercial recovery disputes? Conciliation or Arbitration? Don't just take yes or no answers. Ask them what kind. They should know how to deal with Purchase Orders. Invoices. Delivery of goods. E-way bills. Account ledgers. Acceptance via mail. Debit Notes. Quality Objections from your buyer. How section 18 deals with conciliation and arbitration. Once you talk to them about your case they should be able to give you an idea of what direction your case may go. Don't expect a yes or no answer they should know how to tackle your case. At BK Singh Advocate we ensure that you leave your appointment better informed than when you walked in. If your case involves an MSME law aspect we will let you know about what steps you can take. We also deal with clients who have MSME registration. Another thing you should question your advocate about is if they are aware of your registration. There can be scenarios where you need to show that you are a MSME and you might have your Udyam certificate handy. However the rules may differ based on when and what your registered as. Make sure they go through your registration. Ask them about the date of supply. What date did you receive the purchase order. All these can be factored when you're taking your case forward. Always remember not every dispute will qualify you to receive money from section 18. There will be some who you may not receive back due to the nature of your dispute. We help our clients figure out if they have a strong enough case or if they need a commercial recovery attorney. Your advocate should ask you for documents before stating your case. Don't go with someone who will say I'll get you money back. Just by knowing the outstanding amount. Here is a list of what documents will be needed. Depending on your case this list may vary. Some suppliers may require more documentation than others. The ministry has provided guidance on what documentation will be taken into consideration when taking a case to the MSEFC. Invoices, Delivery Challans, Part Payment and Emails. Make sure your advocate looks into all this before stating if your case can go towards MSEFC or not. This is important. If your advocate doesn't know where to take your case maybe you need to find a new advocate. Of course there is no harm in trying but make sure they know what forum your dispute can go to. As mentioned above. If you fall under section 18 you can initiate your case before the MSEFC. However this doesn't apply to all cases. There may be cases where you have to take it to the Arbitration Tribunal. Commercial Court. Or even Civil Court. It all depends on your dispute. Always know what clause your taking your case to. This also becomes important if the Buyer is in another state from where you live. Let's say you're a MSME in Ghaziabad. You have sold your product to a buyer in Mumbai. Now both parties may have an arbitration clause which says you will approach the Bombay court. There are so many scenarios which can play. So know what your doing before you take legal action. Not all cases that pertain to an MSME are delayed payment cases. If your buyer is refusing to pay because they think your product is defective. That's another case entirely. Maybe they don't think that you did all the work they wanted you to do. Or they owe you money but don't want to pay interest. Whatever the scenario may be there are certain things you have to prove to make sure you can receive money from your buyer. Section 15 states that your buyer must pay you within the time frame stated. This can be done orally or in writing. However it cannot be longer than 45 days if the buyer agrees to pay you after accepting the supply. Your lawyer should be able to tell you what factors can allow you to make a claim. Don't just accept what section number you can use. At MSME lawyers we will go through your documents to help you find out if you are eligible to use the MSMED Act. Depends on your situation. You may send a legal notice to the buyer informing them of your dues. Maybe you need to inform them that you are filing a case. Or perhaps you've sent multiple letters and there is no response. Know why you're sending a legal notice. Ask your lawyer. Is there a benefit to sending one? Maybe you want them to know that you have tried everything to get paid and have decided to take this step forward. Always make sure your legal notice serves a purpose. At BK Singh Advocate we believe if you want to serve one make sure it is needed. There are various instances where you may need to consult an advocate. Perhaps the amount owed to you is high. Your buyer is avoiding you or there may be claims against you from the buyer. Here are some situations where you may want to hire one. Don't hold on too long. Once things get murky its best to seek the help of an MSME Lawyer. We can help you clear up any doubts and take your case to the next stage. When hiring an advocate to represent you in a commercial dispute you want to know how they will tackle your case. At MSME Lawyers we will go through your case file. Determine what you're missing and if applicable how your case can move forward. From the registration to invoices and agreements. We want to ensure your case is airtight. We can help you build a case against your buyer and take your case to the MSEFC. If you're the buyer we can also represent you in these types of disputes. We can analyze what you owe the seller and how much interest you'll be paying them. Every case is different which is why you should talk to an advocate before taking your case to court. At BK Singh Advocate we don't want to promise you we will win your case. There is no such thing as a surety. Everything depends on the documents and what you have to offer to make your case stronger. Hiring an MSME lawyer is easy. Finding the right one is what takes work. You don't have to worry about what type of lawyer to hire if your case is falling under MSMED act. However if you believe that your buyer isn't paying you and would like to know more about MSME law speak to us today. Find out more about what you need to know when you hire an MSME lawyer here.What Questions Should You Ask Before Hiring an MSME Lawyer?
Why do I need a MSME Lawyer in 2026?
Have you handled any cases similar to mine?
Are you aware of my MSME registration?
What documents will you need from me?
Where will I take my case?
Do I qualify as an MSME delayed payment case?
Should I serve a legal notice?
When should you consult an advocate?
How can MSME lawyers help with your case?
FAQ
Q1. What should I ask my MSME lawyer?
Q2. Can a MSME Lawyer get me money?
Q3. Do I need a Udyam registration?
Q4. Will I receive interest on my MSME dispute?
Q5. Where can I file my MSME case?
Q6. My buyer has admitted that he owes me money do I need an advocate?
Q7. Can a buyer defend themselves?
Q8. Should I let an advocate promise me that they will get me money back?
Q9. Can an MSME case be resolved without arbitration?
Q10. When should I reach out to BK Singh advocate?
Final Words
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