Whether or not, copy of the invoice is a mandatory requirement for issuance of demand notice u/s 8(1) of the Code, in Form 3 of the Adjudicating to Authority Rules 2016? – Neeraj Jain Director of M/s Flipkart India Private Limited Vs. Cloudwalker Streaming Technologies Private Limited -NCLAT

NCLAT held that the choice of issuance of demand notice u/s 8(1) of the Code, either in Form 3 or Form 4, under the Application to Adjudicating Authority Rules 2016, depends on the nature of Operational Debt. Section 8(1) does not provide the Operational Creditor, with the discretion to send the demand notice either Form 3 or Form 4, as per its convenience. The applicability of Form 3 or Form 4 depends on whether the invoices were generated during the course of transaction or not. It is also made clear that the copy of the invoice is not mandatory if the demand notice is issued in Form 3 of the Application to Adjudicating Authority Rules 2016 provided the documents to prove the existence of operational debt and the amount in default is attached with the application.

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