The Section 8 demand notice (Form 3, or a copy of the unpaid invoice with Form 4) is served on the corporate debtor demanding payment of the operational debt. If, within 10 days of delivery, the debtor neither pays nor brings to notice a pre-existing dispute or pending suit or arbitration, the creditor may file an application under Section 9 (Form 5) before the NCLT. The default must be at least ₹1 crore.
How the process works in India
- Confirm the debt is operational, in default, undisputed and at least ₹1 crore.
- Serve the Section 8 demand notice at the registered office and on the email addresses of the company and its directors.
- Wait 10 days. Track any reply: a reply that only invents a dispute after the notice does not defeat the application, but a dispute raised earlier usually does.
- File Form 5 with the invoices, the demand notice, proof of delivery, an affidavit that no notice of dispute was received, and bank records showing no payment.
- The NCLT hears the debtor and admits or rejects. On admission, a moratorium begins and an interim resolution professional is appointed.
The key test, from the Supreme Court's 2017 Mobilox decision, is whether a plausible dispute existed before the notice, so emails and statements of account are decisive.
Why it matters for getting paid
Many companies settle before admission, because admission takes the board out of control. A creditor who has already accepted payment can withdraw under Section 12A, with Committee of Creditors approval if one has been formed. The risk is filing without a clean record: a rejected application costs time, and Section 65 penalises initiating insolvency fraudulently or with malicious intent for a purpose other than resolution.
How FundRaksha uses it
For eligible claims, FundRaksha's advocates draft the Section 8 notice with the invoice-wise default and the delivery evidence, so that any later "dispute" is visibly an afterthought. Notices go out within 24 hours of complete documents. If the company does not pay, the same advocate prepares and files the Section 9 application. Below ₹1 crore, the right tool is usually a legal notice for payment. Book a free consultation to check eligibility.
Worked example (hypothetical)
An Ahmedabad chemicals supplier is owed ₹2,15,00,000 by a private limited company on invoices due between January and April. All deliveries were acknowledged on GRNs and no complaint was raised. The Section 8 notice is delivered on 1 June. The 10-day window ends on 11 June with no payment and no reply. The supplier files Form 5 on 20 June. Before the admission hearing, the company proposes ₹1,15,00,000 immediately and ₹1,00,00,000 in two monthly instalments of ₹50,00,000. The supplier accepts in writing, keeps the application pending until the last instalment clears, then withdraws it.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.