What happened (Shiva Chemicals case)

M/S Shiva Chemicals, an Udyam-registered micro enterprise based in Kolkata, West Bengal, faced prolonged payment delays from a public sector buyer despite repeated follow-ups. The enterprise approached the dispute-resolution route by accessing the Ministry of Micro, Small and Medium Enterprises (MSME) ODR Portal and filing a claim before the Micro and Small Enterprises Facilitation Council (MSEFC) under the MSMED Act, 2006. The claim led to a mutual settlement that enabled recovery of ₹4,99,184 against two outstanding invoices. After settlement, the enterprise voluntarily withdrew the case.

Background and earlier position

Under the MSMED Act, 2006, Micro and Small Enterprises can pursue claims related to delayed payments through designated facilitation and dispute-resolution structures. The existence of such statutory mechanisms is meant to reduce the time and transaction costs that MSMEs face when enforcing payment rights, particularly in disputes involving larger buyers.

What changed now

In the Shiva Chemicals matter, the enterprise used the MSME ODR Portal as the entry point to move the dispute to the MSEFC for adjudication and settlement. The outcome described in the government communication is a mutual settlement that resulted in recovery of ₹4,99,184 against two invoices, followed by voluntary withdrawal of the case.

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