An IBC Section 8 demand notice is the notice an operational creditor must deliver to a corporate debtor in Form 3, or by sending a copy of the unpaid invoice with Form 4, under Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. It sets out the operational debt and default, and gives the debtor 10 days from receipt to pay or point out a pre-existing dispute. A Section 9 application can be filed only if the default is at least Rs 1 crore.
The Form 3 format
IBC proceedings have serious consequences and strict requirements. Use this structure to understand and prepare your information, but have an advocate draft, sign-check and deliver the actual notice and the Section 9 application.
FORM 3
(See clause (a) of sub-rule (1) of rule 5)
FORM OF DEMAND NOTICE / INVOICE DEMANDING PAYMENT UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016
[DATE]
To,
[NAME OF CORPORATE DEBTOR]
[ADDRESS OF REGISTERED OFFICE]
CIN: [CIN]
From,
[NAME OF OPERATIONAL CREDITOR]
[ADDRESS]
Subject: Demand notice demanding payment in respect of unpaid operational debt due from [NAME OF CORPORATE DEBTOR] under the Insolvency and Bankruptcy Code, 2016
Madam/Dear Sir,
1. This letter is a demand notice 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
(a) Total amount of debt, details of transactions on account of which the debt fell due, and the date from which the debt fell due:
[AMOUNT; INVOICE NOS., DATES AND DESCRIPTION OF SUPPLY; DUE DATES]
(b) Amount claimed to be in default and the date on which the default occurred (workings for computation of amount and dates of default attached in tabular form):
[AMOUNT IN DEFAULT; DATE(S) OF DEFAULT]
(c) Particulars of security held, if any, the date of its creation and its estimated value as per the creditor (attach copy of certificate of registration of charge issued by the Registrar of Companies, if any):
[DETAILS OR "NIL"]
(d) Details of retention of title arrangements (if any) in respect of goods to which the operational debt refers:
[DETAILS OR "NIL"]
(e) Record of default with the information utility (if any):
[DETAILS OR "NIL"]
(f) Provision of law, contract or other document under which the operational debt has become due:
[PO NO. / AGREEMENT DATED ... / INVOICE TERMS]
(g) List of documents attached to prove the existence of the operational debt and the amount in default:
[INVOICES, PO, DELIVERY CHALLANS / E-WAY BILLS, GRNS, LEDGER, CORRESPONDENCE]
3. If you dispute the existence or amount of the unpaid operational debt (in default), please inform the undersigned, within ten days of the receipt of this letter, of the pendency of a suit or arbitration proceedings in relation to such dispute filed before the receipt of this letter.
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, (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 OPERATIONAL CREDITOR] has received the payment.
5. [If applicable: The undersigned 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.]
6. The undersigned requests 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: [NAME]
Position with or in relation to the operational creditor: [DESIGNATION / ADVOCATE AUTHORISED BY ...]
Address of person signing: [ADDRESS]How to fill it
- Confirm the debtor is a company or LLP (a "corporate debtor"). IBC Part II does not apply to proprietorships or partnership firms; use other routes for them. MCA master data gives the CIN and registered office.
- Check the amount in default is at least Rs 1 crore. Below that, a Section 9 application cannot be filed, and a Form 3 notice adds little.
- In item (a) and (b), give a table of invoices, due dates, payments received and the default date for each. Default means the debt became due and was not paid.
- In item (f), cite the PO, contract or invoice terms that make the amount payable.
- Attach every document listed in item (g). The NCLT looks closely at whether the debt and default are proved by documents.
- Have it signed by an authorised person and keep the authorisation (board resolution or letter) ready for the Section 9 application.
Common mistakes
- Using IBC as a debt collection threat when there is a real dispute on record, such as quality complaints or rejection emails before the notice. Such applications are usually rejected.
- Delivering only to the registered office by ordinary post, with no proof. Rule 5 allows delivery at the registered office by hand, registered post or speed post, or by email to a whole-time director, designated partner or key managerial personnel.
- Filing the Section 9 application before 10 days from delivery have passed.
- Ignoring limitation. Courts have applied a three-year period from the date of default to Section 9 applications.
- Claiming interest that the contract does not support, which can inflate the default and invite objections.
What happens next
Within 10 days of receipt, the corporate debtor may pay, or reply pointing to a pre-existing dispute or a pending suit or arbitration. If it does neither, the operational creditor may file a Section 9 application in Form 5 before the NCLT bench with jurisdiction over the debtor's registered office. If admitted, a moratorium begins and an interim resolution professional takes over management. Many debtors settle after receiving a well-founded notice for that reason.
For dues below Rs 1 crore, or where a dispute exists, a civil recovery suit, summary suit or MSME reference is usually the better route. A FundRaksha free consultation will tell you which applies; FundRaksha has worked on more than ₹50 Cr+ of invoices.
Last reviewed: 2026-10-20. Information for Indian businesses; not legal advice.