Whether demand notice based on the invoices can be issued in Form-3 instead of Form-4 and which is the better format of issuing Demand Notice – Tudor India Pvt. Ltd. Vs. Servotech Power Systems Limited – NCLT New Delhi Bench Court-II

NCLT held that in a situation where an Operational Debt arises out of the provision of goods and services and pursuant to that Invoices are raised, there is no illegality in choosing the Form 3 as provided in Rule 5(1)(a) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for sending the Demand Notice provided that the Unpaid Invoices forming part of the transaction are annexed therewith. Hence, issuance of Demand Notice in Form 3 annexed with invoices by the Operational Creditor in the present case would be in order in terms of the Rules.

Whether demand notice based on the invoices can be issued in Form-3 instead of Form-4 and which is the better format of issuing Demand Notice – Tudor India Pvt. Ltd. Vs. Servotech Power Systems Limited – NCLT New Delhi Bench Court-II Read Post »