Consultation to Issue Demand Notice

Q: What is a demand notice under the IBC?

A demand notice is a formal notice an operational creditor serves on a corporate debtor demanding payment of an unpaid operational debt in default. Under the IBC, issuing it is generally a required first step before an operational creditor can initiate insolvency proceedings.

Q: Who is an operational creditor?

An operational creditor is broadly a person to whom an operational debt is owed, typically arising from the provision of goods or services, including dues to suppliers, service providers, employees, and certain statutory dues, unlike a financial creditor whose debt arises from lending.

Q: Why is it important to get the demand notice right?

The notice must be in the correct form with the right particulars of the debt and default. If defective or incomplete, it can weaken or invalidate a subsequent insolvency application, so careful preparation protects your ability to proceed and pursue recovery.

Take the Correct First Step Toward Recovering Your Operational Debt Under the IBC

For an operational creditor who is owed money by a company in default, the Insolvency and Bankruptcy Code sets out a specific first step before insolvency proceedings can be initiated: serving a demand notice on the corporate debtor. This notice formally demands payment of the unpaid operational debt and starts the clock for the debtor to either pay or dispute the claim. Getting this notice right — in the correct form, with the right particulars — is essential, because errors can undermine any subsequent application.

Our consultation to issue a demand notice helps operational creditors take this crucial step correctly. We assess your claim, advise on eligibility, and help you prepare and issue a demand notice that is accurate, complete, and compliant with the IBC. This service is often the entry point to our wider insolvency services, and connects with the Interim Resolution Professional and Resolution Professional stages that may follow.

Our Demand Notice Consultation Services

Claim Assessment

Reviewing your unpaid operational debt and the default position.

Eligibility Advice

Advising whether the claim meets the conditions to proceed under the Code.

Notice Preparation

Preparing the demand notice in the correct form with the right particulars.

Supporting Documents

Identifying and assembling the documents that support your claim.

Issuance Guidance

Guidance on correctly serving the notice on the corporate debtor.

Next-Step Advisory

Advising on the options if the debtor does not pay or disputes the claim.

Benefits of Professional Demand Notice Consultation

A correct, compliant first step toward recovery
Clarity on whether your claim is eligible to proceed
A demand notice prepared in the right form and particulars
Reduced risk of errors that could undermine later steps
Support in assembling the documents that back your claim
Clear guidance on what to do after the notice is issued

Frequently Asked Questions

What is a demand notice under the IBC?

A demand notice is a formal notice that an operational creditor serves on a corporate debtor demanding payment of an unpaid operational debt that is in default. Under the Insolvency and Bankruptcy Code, issuing this notice is generally a required first step before an operational creditor can initiate insolvency proceedings against the debtor.

Who is an operational creditor?

An operational creditor is, broadly, a person to whom an operational debt is owed — typically debts arising from the provision of goods or services, including dues to suppliers, service providers, employees, and certain statutory dues. This differs from a financial creditor, whose debt arises from lending or financial facilities.

Why is it important to get the demand notice right?

The demand notice must be in the correct form and contain the right particulars of the debt and default. If it is defective or incomplete, it can weaken or invalidate a subsequent insolvency application. Careful preparation at this stage protects your ability to proceed and pursue recovery effectively.

What happens after the demand notice is served?

After service, the corporate debtor has a defined period to either pay the unpaid debt or notify a dispute or record of payment. Depending on the debtor's response — or lack of one — the operational creditor may then be in a position to initiate insolvency proceedings before the adjudicating authority, on which we advise.

Do I need a demand notice for every kind of debt?

The demand notice route is specific to operational creditors and operational debts. Financial creditors follow a different process. As part of the consultation, we assess the nature of your claim, confirm the correct route, and ensure you take the appropriate first step under the Code for your particular situation.

Start Your Recovery the Right Way

Consultation to issue a compliant demand notice and pursue your operational debt under the IBC.