Whether it is the discretion of Operational Creditor or the nature of the Operational Debt, that determines the issuance of Demand Notice in Form-3 or Form-4 under Section 8 of the Insolvency and Bankruptcy Code, 2016? – Tejinder Pal Setia Vs. Kone Elevator India Pvt. Ltd. and Ors. – NCLAT New Delhi
NCLAT held that the Operational Creditor is at liberty to submit Demand Notice either in Form-3 or Form-4. When Notice is issued in Form-4, copy of the Invoice is required to be attached with the Notice. The Demand Notice issued by the Operational Creditor was in Form-3, hence, no infirmity can be found in the Demand Notice, if invoices were not attached. In the present case, the basis of the Demand Notice was Supply Agreement and acknowledgement letter issued by the Corporate Debtor. No invoices were referred to in the Demand Notice. Hence, submission of the Appellant that Demand Notice should have been accompanied with the invoices cannot be accepted.