[SPEED POST/REGISTERED AD/EMAIL]

To,

1. M/s ____________

2. Mr. _____________

3. Mr. _____________

4. Mr. ___________

5. Mr. ___________

6. Ms. ___________

7. Ms. ___________

Our
Client:

Sub Demand Notice under Section 8 of the Insolvency

: and Bankruptcy Code, 2016, read with Rule 5 (1)
(a) of the Insolvency and Bankruptcy (Application
to Adjudicating Authority) Rules, 2016, in respect
of the unpaid operational debt of Rs. ________/-
along with interest @ 18% p.a. as due from M/s
___________

Dear Sir/Madam,

1. We under the instructions from and on behalf of M/s _______

serve upon you M/s __________, the present Demand Notice
under Section 8 of the Insolvency and Bankruptcy Code,
2016, read with Rule 5 (1)(a) of the Insolvency and
Bankruptcy (Application to Adjudicating Authority) Rules,
2016, in respect of the unpaid operational debt of Rs.
 ________/- along with interest @ 18% p.a. is due and
recoverable by M/s _______. against the goods supplied to
M/s ____________

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

PARTICULARS OF OPERATIONAL DEBT

1. Total amount of debt, Rs. __________/- along with
details of transaction interest @ 18% p.a. is due
on account of which from ______.
debt will fall due, and
the date from which The debt fell due to M/s
such debt fell due _______. (“Operational
Creditor”) pursuant to the
supply of 2500 kms of 48F
Ribbon Type Optical Fibre
Cable double HDPE Sheath
by the Operational Creditor
to M/s ________ (“Corporate
Debtor”) and the Corporate
Debtor received payment
from its ultimate customers
against the Cables supplied
by the Operational Creditor.
The details of the transaction
on account of which the debt
fell due is inter alia
delineated as under:

a. The Corporate Debtor

issued the Purchase
Order No. _________
dated _______ (“PO”), in
favour of Operational
Creditor for supply of
5000 kms of 48F Ribbon
Type Optical Fibre Cable
double HDPE Sheath
(“Cables”), @ Rs.
_______/- per k.m., as per
the BSNL’s tender
specifications provided
 under the Tender No. T-
609.

b. The terms of the PO was

subsequently modified
and the Corporate
Debtor issued the
amended PO No. ______
dated ______, in favour of
the Operational Creditor
for supply of 2500 Kms
of Cables @ Rs. ______/-
per k.m.
c. As per the agreed terms,
the Corporate Debtor
was liable to make
“back-to-back” payment
of the invoices raised by
the Operational Creditor
against the Cables
supplied under the said
PO. In other words, the
Corporate Debtor agreed
to make payment of the
invoice amount,
immediately upon BSNL
releasing the payment
to the Corporate Debtor
against the said supply
of the Operational
Creditor under the said
Tender.
d. The Operational Creditor
made supply of
2500.238 km Cables
from September 16,
2018 till December 10,
2018, as per the PO
specifications and raised
invoices for a total sum
of Rs. _______/-, from
time to time.
e. The Corporate Debtor
duly accepted the
Cables supplied and the
invoices issued by the
Operational Creditor,
thereto.
f. Against the total invoice
amount of Rs. _______/-,
part-payment of Rs.
______/- was made by the
Corporate Debtor on
_______. Thereafter, the
Corporate Debtor made
subsequent part-
payments of Rs. ______/-
on _______, Rs. ______/-
on _______ and Rs.
______/- on ______.

g. As on March 31, 2020, a

sum of Rs. ______/- was
due and payable by the
Corporate Debtor, which
amount was confirmed
by the Corporate Debtor
on May 21, 2020.

h. However, despite
confirming the
outstanding balance of
Rs. ________/-, duly
reflected in the books of
account of both the
parties, the Corporate
Debtor, to the utter
surprise of the
Operational Creditor,
stopped further
payments.

i. The Corporate Debtor,

justified its delay in
payment of the
 outstanding invoice
amount by citing that
BSNL, its ultimate
customer has held back
its dues, thereby
incapacitating the
Corporate Debtor to
make payment of the
unpaid invoice amount.
The Corporate Debtor
claimed to be in talks
with BSNL, who assured
to release the dues of
the Corporate Debtor
expeditiously and no
later than two months.

j. The Corporate Debtor,

assuring to make
payment of entire
outstanding invoice
amount, immediately on
receipt of payment from
BSNL, requested the
Operational Creditor to
support them till such
time. The Operational
Creditor with the bona
fide belief and assurance
from the Corporate
Debtor, agreed to give
some more time to the
Corporate Debtor to
enable the latter to
make payment of the
entire outstanding dues.

k. That despite lapse of

almost ten months, the
Corporate Debtor failed
to make any payment
and the Operational
Creditor was constrained
to pursue with the
 Corporate Debtor for
release of the unpaid
invoice amount.

Subsequently, after
much cajoling and
persuasion, the
Corporate Debtor, made
part-payment of Rs.
______/- in three
instalments i.e. Rs.
______/- on October 01,
2020, Rs. ______/- on
November 03, 2020, and
Rs. _______/- on March
05, 2021. It is pertinent
to mention that after
making part payment of
Rs. ______/- on March 05,
2021, the Corporate
Debtor did not make any
further payment, despite
receiving the entire
payment from BSNL by
June 30, 2021, for the
said Cables under the
PO. Thus, the Corporate
Debtor’s liability to make
payment of the
outstanding invoice
amount became due and
payable on July 01,
2021.

l. As on the date of
issuance of this Demand
Notice, the Corporate
Debtor is liable to make
payment of Rs. _______/-
against the Cables
received from the
Operational Creditor
under the PO.
 m. It is pertinent to mention
that the Corporate
Debtor is bound to
reverse the Input Tax
Credit availed by it on
account of non-payment
to the Operational
Creditor, within 180 days
from the date of invoice,
as per the Second and
Third proviso to Section
16(2) of the Central
Goods & Services Tax
Act, 2017.

n. As per the agreed terms

and conditions of the
Tax Invoices, raised by
the Operational Creditor
from time to time
against the Cables
supplied, the Corporate
Debtor is liable to pay
interest @ 18% p.a. on
the outstanding dues
and GST on the accrued
interest, in case of any
default in payment of
the invoice amount.
Thus, the Corporate
Debtor is liable to pay an
additional sum of Rs.
_______/- towards
interest accrued on the
outstanding invoice
amount and a sum of Rs.
______/- towards GST on
the accrued interest.
Thus, the Operational
Creditor is liable to recover a
sum of Rs. ______/- as
interest @ 18% p.a. on the
total outstanding invoice
 amount of Rs. ______/-,
thereby totalling to a sum of
Rs. _____/- .

The debt fell due on July 01,

2021, since despite receipt
of the entire payment from
BSNL by June 30, 2021, the
Corporate Debtor
failed/neglected and avoided
to make payment to the
Operational Creditor, against
the Cables duly supplied.

2. Amount claimed to be Rs. _____/- along with interest

in default and the date @ 18% p.a. is due from July
on which the default 01, 2021.
occurred.
The debt fell due to the
(Attach the workings Operational Creditor
for computation of pursuant to the supply of
default in tabular form) Cables by the Operational
Creditor to the Corporate
Debtor and the Corporate
Debtor receiving payment
from its ultimate customers
against the Cables supplied
by the Operational Creditor.

The debt fell due on July 01,

2021.
3. Particulars of security Not applicable.
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 Not applicable.
title arrangements (if
any) in respect of
goods to which the
Operation Debt refers.
5. Record of default with Not applicable.
the information utility,
if any.

6. Provision of law, a. The Indian Contract Act,

contract or other 1872;
Documents under
b. The Amended PO No.
which debt has
______ dated ______;
become due.
c. Supply Statement
against the Amended PO
No. ______ dated ______;
d. Tax Invoices raised
between September 16,
2018 till December 10,
2018;
e. Ledger Statement of the
Corporate Debtor, as
maintained by the
Operational Creditor.
7. List of documents a. Copy of the Amended PO
attached to this No. ______ dated ______
application in order to is annexed as
prove the existence of Annexure-1;
Operational Debt and
b. Supply Statement
the amount of default
against the Amended PO
No. ______ dated _______,
is annexed as
Annexure-2;

c. Tabular Chart detailing

the Tax Invoices raised
between September 16,
2018 till December 10,
2018, against the Cables
supplied, is annexed as
 Annexure-3.
d. Computation of the
outstanding amount and
accrued interest on the
delayed payment, is
annexed as Annexure-
4;
e. Copy of the Balance
Confirmation dated May
21, 2020, is annexed as
Annexure-5;
f. Copy of the emails dated
March 28, 2019, issued
by the Operational
Creditor to the
Corporate Debtor, is
annexed as Annexure-
6;
g. Copy of the email dated
March 23, 2021, issued
by the Operational
Creditor to the
Corporate Debtor, is
annexed as Annexure-
7;
h. Copy of the email dated
October 19, 2021, issued
by the Operational
Creditor to the
Corporate Debtor is
annexed as Annexure-
8;
i. Ledger Statement from
September 01, 2018 till
December 21, 2021, is
annexed as Annexure-
9.

3. If you, the Corporate Debtor dispute the existence or

amount of unpaid operational debt (in default) please
provide the undersigned, within ten days of 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, the Corporate Debtor believe that the debt has been
repaid before the receipt of this letter, please demonstrate
such repayment by sending us, within ten days of receipt of
this letter, the following:

a. an attested copy of the record of electronic transfer of

unpaid amount from bank account of M/s ______.; or
b. an attested copy of any record that M/s _________ has
received the payment.

5. We, on behalf of our client M/s ________., request you, the

Corporate Debtor, to unconditionally repay the unpaid
operational aforesaid 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 the
Operational Creditor, M/s _________.

This notice is issued without prejudice to the rights of the

Operational Creditor to initiate proceedings against the
Corporate Debtor of either winding-up or such proceedings to
recover the default amount, as may be available with the
Operational Creditor under law.

A copy of this notice is being retained by us for future reference.

Thanking you.