[Supplier letterhead]

Date: [__/__/____]        By [registered post / email]

To: [Buyer name], [address]

Subject: Notice for payment of ₹ [____] with interest under section 16 of the MSMED Act, 2006

1. We are a [micro / small] enterprise, Udyam Registration No. [____], registered on [__/__/____]. We supplied [goods/services] to you under PO/Contract [____] dated [__/__/____], covered by invoices listed in Annexure A.

2. The goods/services were delivered on [dates]. No written objection was received within 15 days of delivery. [Alternatively: your objection of [date] was removed by us on [date].] The day of acceptance or deemed acceptance is therefore [date].

3. Under section 15, payment was due [on the agreed date of [date], being within 45 days of acceptance] [before the appointed day, [date]]. The principal of ₹ [____] remains unpaid [after part-payment of ₹ [____] on [date]].

4. Under section 16, you are liable to pay compound interest with monthly rests at three times the bank rate notified by the Reserve Bank, notwithstanding anything in any agreement. Interest up to [date] is ₹ [____] as computed in Annexure A.

5. Please pay the sum of ₹ [____] together with further interest until payment within [15] days of this notice. If you do not, we shall make a reference to the Micro and Small Enterprises Facilitation Council under section 18 without further notice.

Yours faithfully, [Name, Designation, Signature]

ANNEXURE A: STATEMENT OF PRINCIPAL AND INTEREST