Demand Notice under Insolvency and Bankruptcy Code

Demand Notice under Insolvency and bankruptcy Code is hereby given below.

FORM OF DEMAND NOTICE / INVOICE DEMANDING PAYMENT UNDER THE  INSOLVENCY AND BANKRUPTCY CODE, 2016 

(Under rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules,  2016

[Date

To, 

[Name and address of the registered office of the corporate debtor]  

From, 

[Name and address of the registered office of the operational creditor

Subject: Demand notice/invoice demanding payment in respect of unpaid operational debt due  from [corporate debtor] under the Code. 

Madam/Sir, 

1. This letter is a demand notice/invoice demanding payment of an unpaid operational debt  due from [name of corporate debtor]. 

2. Please find particulars of the unpaid operational debt below: 

PARTICULARS OF OPERATIONAL DEBT
1. TOTAL AMOUNT OF DEBT, DETAILS OF TRANSACTIONS ON ACCOUNT OF WHICH DEBT FELL DUE, AND THE DATE FROM WHICH SUCH DEBT FELL DUE 
2. AMOUNT CLAIMED TO BE IN DEFAULT  AND THE DATE ON WHICH THE DEFAULT  OCCURRED (ATTACH THE WORKINGS  FOR COMPUTATION OF DEFAULT IN  TABULAR FORM)
3. PARTICULARS OF SECURITY HELD, IF  ANY, THE DATE OF ITS CREATION, ITS  ESTIMATED VALUE AS PER THE  CREDITOR. ATTACH A COPY OF A CERTIFICATE OF  REGISTRATION OF CHARGE ISSUED BY  THE REGISTRAR OF COMPANIES (IF THE  CORPORATE DEBTOR IS A COMPANY)
4. DETAILS OF RETENTION OF TITLE  ARRANGEMENTS (IF ANY) IN RESPECT  OF GOODS TO WHICH THE OPERATIONAL  DEBT REFERS
5. RECORD OF DEFAULT WITH THE  INFORMATION UTILITY (IF ANY)
6. PROVISION OF LAW, CONTRACT OR  OTHER DOCUMENT UNDER WHICH DEBT  HAS BECOME DUE
7. LIST OF DOCUMENTS ATTACHED TO  THIS APPLICATION IN ORDER TO PROVE  THE EXISTENCE OF OPERATIONAL DEBT  AND THE AMOUNT IN DEFAULT

3. If you dispute the existence or amount of unpaid operational debt (in default) please provide  the undersigned, within ten days of the receipt of this letter, of the pendency of the suit or  arbitration proceedings in relation to such dispute filed before the receipt of this letter/notice. 

4. If you believe that the debt has been repaid before the receipt of this letter, please  demonstrate such repayment by sending to us, within ten days of receipt of this letter, the following: 

(a) an attested copy of the record of electronic transfer of the unpaid amount from the  bank account of the corporate debtor; or 

(b) an attested copy of any record that [name of the operational creditor] has received  the payment. 

5. The undersigned, hereby, attaches a certificate from an information utility confirming that  no record of a dispute raised in relation to the relevant operational debt has been filed by  any person at any information utility. (if applicable) 

6. The undersigned request you to unconditionally repay the unpaid operational debt (in  default) in full within ten days from the receipt of this letter failing which we shall initiate  a corporate insolvency resolution process in respect of [name of corporate debtor]. 

Yours sincerely, 

Signature of person authorised to act on behalf of the operational creditor
Name in block letters
Position with or in relation to the operational creditor
Address of person signing

Instructions 

1. Please serve a copy of this form on the corporate debtor, ten days in advance of filing an  application under section 9 of the Code. 

2. Please append a copy of such served notice to the application made by the operational creditor  to the Adjudicating Authority. 

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