Insolvency

You have received a demand notice under Section 8 of the IBC. Now what?

You have received a demand notice under Section 8 of the IBC. Now what?

A statutory demand notice starts a short clock. What you do inside it largely determines whether an application is admitted later.

A statutory demand notice from an operational creditor starts a short clock. The response window is measured in days, and what you do inside it — pay, record an existing dispute, or negotiate — largely determines whether an application is admitted later. Silence is the one response with no upside.

If a notice has arrived, or if an application has already been filed against the company, speak to somebody the same week. The options narrow considerably at admission, and they narrow again once the committee of creditors is constituted.

For IBC advisory, see Insolvency & Bankruptcy.

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