How to Draft a Section 8 IBC Demand Notice: Complete Step-by-Step Guide
A practical walkthrough for drafting a complete and legally sound demand notice under Section 8(1) of the IBC — from gathering facts to dispatch, with a ready-to-use checklist.
Overview
This tutorial walks you through drafting a complete Section 8(1) demand notice from scratch. By the end you will have a clear template and checklist you can adapt for any operational debt matter.
Step 1: Gather All Facts
Before writing, collect the following:
About your client (the Creditor):
- Full registered name
- Registered address and GSTIN
About the Corporate Debtor:
- Full name as it appears on MCA — go to mca.gov.in → Company Search
- Registered office address from MCA
- CIN number (confirms identity)
About the Debt:
- Copy of the contract or MOU
- All unpaid invoices with dates, amounts, and GST breakdowns
- Payment history — what was paid and when
- Any emails acknowledging the debt
- Due dates for each invoice
Step 2: Verify the ₹1 Crore Threshold
Add up: principal + GST + interest. If the total is below ₹1 crore, the Section 8/9 route is not available. You can still send the notice as a pre-litigation demand, but do not threaten CIRP.
Step 3: Calculate Interest
If the contract specifies interest, use that rate. If not, use a reasonable rate (9%–12% p.a.) and state the basis clearly.
Example:
Invoice No. 1: ₹5,00,000 due on 01/01/2024
Days overdue as of 01/03/2026: 790 days
Interest = 5,00,000 × 9% × (790/365) = ₹97,808
Do this for each invoice separately and create a schedule.
Step 4: Draft the Notice — Structure
Header
Date: [Date]
To,
[Full registered name of Corporate Debtor]
[Registered address as per MCA]
CIN: [CIN]
Subject Line
Subject: Demand Notice under Section 8(1) of the Insolvency and
Bankruptcy Code, 2016 read with Rule 5 of the IBC (Application to
Adjudicating Authority) Rules, 2016
Para 1 — Authority
State that you act under instructions from the creditor and are issuing this notice under the stated provisions.
Para 2 — The Contract
Describe the contract: type, date, parties, and the obligation to pay.
Para 3 — Work Done
State what the creditor has done and that it has been performed in full.
Para 4 — Payment History
State total due, amounts paid, and balance outstanding. Be precise.
Para 5 — Interest
State rate, start dates, and total interest accrued with reference to the schedule.
Para 6 — Total Demand
State the total clearly in figures and words.
Para 7 — Demand and Consequence
Give 10 days to pay, and state that failure will result in a Section 9 application before the NCLT. Only include this if the total crosses ₹1 crore.
Step 5: Attach These Documents
- Copy of the contract or MOU
- Copies of all unpaid invoices
- Interest computation schedule
- Any emails acknowledging the debt
Step 6: Pre-Dispatch Checklist
| Item | ✓ | |---|---| | Registered address verified on MCA | | | Interest computed per invoice with start dates | | | Total verified — crosses ₹1 crore | | | All annexures attached | | | Advocate name, enrollment no., address stated | | | Notice correctly dated | |
Step 7: Service
Send via two modes simultaneously:
- Speed Post / RPAD to the registered address — keep tracking receipt
- Email to company's registered email and any known official emails
Keep all proof of dispatch. You need this when filing the Section 9 application.
Step 8: Wait 10 Days
The clock starts from receipt by the debtor, not dispatch. If a dispute is raised, evaluate whether it is a genuine pre-existing dispute. If no response or payment is received in 10 days, you may proceed to Section 9.