Best MSME Facilitation Councils – Delhi, Uttar Pradesh and Haryana Lawyer

Each state has at least one Micro and Small Enterprises Facilitation Council, set up under Section 20 of the MSMED Act, to resolve delayed payment disputes between micro and small suppliers and their buyers. For Delhi NCR, three state systems matter: the Delhi council, the Uttar Pradesh councils (which serve Ghaziabad, Noida and Greater Noida), and the Haryana councils (which serve Gurugram, Faridabad and the rest of Haryana). Some states have regional councils for groups of districts.

This page is for suppliers deciding where to file and buyers who have received a council notice. In short: under the current law, a supplier files before the council of the state where it is located, and the buyer can be anywhere in India. New cases are filed through the MSME online dispute resolution portal. The council conciliates first and, if that fails, arbitrates, with a 90-day target for its decision.

The MSMED (Amendment) Act, 2026 changes how councils are set up and composed. From 15 October 2026, states may set up more councils to meet their caseload. From 15 December 2026, each council must have three to five members, with a chairperson not below the rank of Joint Director of Industries, representation of MSE associations, and at least one member with a legal background.

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Councils in Delhi NCR

Choosing the council

Section 18(4) of the MSMED Act says that the council, or the institution it refers the matter to, has jurisdiction to act as arbitrator or conciliator in a dispute between a supplier located within its jurisdiction and a buyer located anywhere in India. So the supplier's location decides the council, not the buyer's. A Noida supplier with a buyer in Mumbai files before the UP council, and a Gurugram supplier with a buyer in Delhi files before the Haryana council.

Where a state has regional councils, the regional council for the supplier's district is usually the right one. The ODR portal routes cases based on the supplier's registered details, so make sure your Udyam address is current.

The MSMED (Amendment) Act, 2026 provides that jurisdiction will lie with the council or ADR institution where the supplier's registered address is, regardless of the buyer's location. That provision, part of the amendments to Section 18, had not been brought into force as of this review, but it reflects the existing practice.

How a council case runs

Time and typical cost range

Our fees are agreed in writing at the start, stage by stage, and are not linked to the outcome.

Documents for council cases

Councils and courts for Delhi NCR suppliers

How councils differ in practice

Councils are run by state industries departments and vary in how often they meet, how quickly they list cases, and how formal their proceedings are. Some meet monthly and take up many cases in one sitting; others have more frequent online sittings since the ODR portal went live. Some refer arbitrations to institutions; others decide them directly.

Because members change and practices differ, the best preparation is the same everywhere: a clear claim, complete documents, and readiness to attend every date. For buyers, a reasoned written defence filed on time, with documents, matters more than oral argument.

Long delays have been a common complaint. The 2026 amendment's requirement that states set up enough councils and hold regular meetings is meant to address this, but it depends on state action. If your case is stuck, a written request to the member secretary, and in long-pending cases a writ petition seeking a time-bound decision, are possible steps.

Buyers in NCR facing councils in other states

Delhi NCR companies often buy from suppliers across India, and may receive notices from councils in Gujarat, Maharashtra, Tamil Nadu or elsewhere. Under the current law, the supplier's council has jurisdiction, so the buyer must respond there. With online conciliation and hearings now common, this is less burdensome than before.

Respond to every notice, attend conciliation, and file a defence with documents. Consider the supplier's registration date, the supply dates, whether the contract is a works contract, and limitation. If the claim is genuine, settle; Section 16 interest grows monthly, and the 75% deposit rule makes later challenges expensive. See defend an MSME claim.

Laws that apply

How we work

We are a litigation and advisory practice led by Advocate BK Singh, with offices in Dwarka (New Delhi) and Vaishali (Ghaziabad). This is what you can expect:

• Right council: based on your registered location.
• Portal filings: prepared and filed for you.
• Representation: at conciliation and arbitration, online or in person.
• Buyers defended: in NCR and before councils in other states.
• Written fee terms: agreed stage by stage, never linked to the outcome.

Mistakes before councils

What the council expects from suppliers

Councils decide many cases and appreciate claims that are easy to follow. Prepare a one-page summary of the claim, an invoice-wise table with dates of supply, acceptance, due date, payments and interest, and attach documents in the same order. Make sure the buyer's legal name and address are correct, so notices reach the right entity.

At conciliation, be ready to explain the claim briefly and to respond to the buyer's points. Have a settlement range in mind, especially on interest. If the buyer offers to pay the principal promptly and asks for a reduction in interest, consider it seriously; the time saved may be worth more than the interest given up.

At arbitration, file a statement of claim that reads like a short, clear pleading, not a collection of documents. State the legal basis for interest under Section 16, and attach your Udyam certificate and proof of registration date.

What the council expects from buyers

Buyers who do not respond often end up with awards they could have reduced or avoided. When a notice arrives, verify the supplier's Udyam status and registration date, reconcile the claimed invoices with your accounts, and identify any written rejections or complaints made at the time of supply. File a written reply with documents before the conciliation meeting.

If the claim is largely correct, use conciliation to negotiate payment terms and interest. If you dispute it, set out the defence specifically, with documents, and raise any jurisdiction objection, such as pre-registration supplies or a works contract, at the start. Objections raised for the first time in a Section 34 petition are weaker.

Remember the deposit rule. A buyer who loses before the council and wants to challenge must deposit 75% of the award first. That makes the council stage the place to put your full defence.

The 2026 amendment: what is in force and what is not

The MSMED (Amendment) Act, 2026 received Presidential assent on 13 August 2026. By a notification of 12 October 2026, several provisions came into force on 15 October 2026, including the new rules on registration (free and voluntary, through a national digital platform), the TReDS requirement for Central Public Sector Enterprises, the substituted Section 20 allowing states to set up adequate numbers of councils, disclosure requirements, and revised penalties with an adjudication framework. The new composition of councils under the substituted Section 21 applies from 15 December 2026.

The provisions that would change the procedure under Section 18 (a 90-day mediation period, arbitration to start within 30 days after mediation, an award within 90 days of pleadings, supplier-address jurisdiction and online proceedings), the new Section 18A on recovery as arrears of land revenue, and the change to Section 19 requiring release of at least 50% of the award if a challenge is pending for more than six months, had not been brought into force as of this review. Councils therefore continue to apply the existing Section 18 and 19. Check for further notifications before relying on the new provisions.

How councils deal with registration disputes

One of the most common objections before councils in Delhi NCR is that the supplier was not registered when some or all of the supplies were made. Councils deal with this differently while the law remains unsettled. Some allow the claim for supplies after registration and decline jurisdiction for earlier supplies. Some allow the full claim, following the broader view in NBCC v State of West Bengal (January 2025). Some grant the principal on earlier supplies but not Section 16 interest.

For suppliers, the practical course is to separate pre-registration and post-registration invoices in the claim, so the council can deal with each group, and so that a partial objection does not delay the whole claim. For buyers, raise the objection specifically, with the registration date and the supply dates, at the start of the arbitration stage.

Writ petitions against councils and when they succeed

Buyers in Delhi, UP and Haryana sometimes file writ petitions in the High Court against council orders, especially orders rejecting a jurisdiction objection or awards they wish to avoid depositing for. The High Courts generally hold that the remedy against an award is a Section 34 petition with the 75% deposit, and that a writ should not be used to bypass it. Writs are entertained only in exceptional cases.

Where a council has not decided a case for a very long time, suppliers have sometimes filed writs seeking a direction to decide the reference within a fixed period, and High Courts have issued such directions. That is a different and more accepted use of the writ jurisdiction.

After the council's award

Once the council passes an award, the buyer has three choices: pay, challenge with a 75% deposit, or do nothing. If it does nothing, the supplier can file for execution after the challenge period expires. Execution is filed in the court where the buyer's assets are, which may be outside the council's state.

If the buyer challenges and deposits, the supplier should apply for release of part of the deposit under Section 19. Courts often release a substantial part against an undertaking or bank guarantee. Many cases settle at this point: the buyer, with 75% already in court, may agree to release the deposit to the supplier in full settlement, ending the matter. See challenge an MSME award.