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Demand notice U/S 8 IBC issued by operational creditor

Our company is an NPA and is under restructuring from the bank and negotiations are on to make a one time settlement.one of our op. creditors have issued a demand notice under sec 8 of IBC for insolvency resolution. Our case against bank is in DRT, till we work out restructuring.How should i deal with this demand notice?

Answers (4)

Firstly, make sure that you reply to the Demand Notice issued under Section 8. Secondly, you need to see as to whether the debt which is due to the Operational Creditor is a legal debt or not, meaning thereby, do check up if the debt is more than 3 years old or not, if it is more than 3 years old, you can take the limitation defence and reject the claim of the operational creditor. Further, if you are genuinely trying for restructuring you can put that forward to your Operational Creditor in reply to the demand notice. If the Operational Creditor is sensible he would not go ahead with the filing of insolvency Petition as he would occur unnecessary expense. You should not admit the debt at any instance, because if debt is you may have a weak defence at the time of Petition Stage.

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Demand Notice under Section of IBC received by you must be relied failing which operational creditor will initiate process for Corporate insolvency under Section 9. Well although negotiation between you and your banker is going on for settlement, operational creditors have nothing to do with it. We suggest to reply that settlement between your company and banker for restructuring loan is under process and hope to arrive at amicable settlement. We do not have any mala fide intention of not making payments to our valued creditors. We are always willing to make your payment once the settlement with our banker is arrived at, which we hope to complete very soon. We solicit your kind cooperation in our difficult times, which you as our valued creditor, have always supported in the past. We request you not to take any further legal action under any law of the land. We would be happy to meet you in person for a further discussion. Kindly let us know when can we meet for a discussion on the subject matter.

Thanking you,

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DEAr in your matter u have to send reply of that notice within sufficient time limit and in that notice u have to put number of DRT matter and inform to creditors that process is still going on so now its court matter pending

Proceeding under DRT & under ibc is different the creditor can file an application under ibc even if there is any proceeding pending under drt
So if you want to deal with it can please consult an advocate he will advise you or you can contact me on my number

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