Reply to CIRP Notice — Corporate Debtor Draft

[Corporate Debtor Letterhead]

Ref: [CD/IBC/____/20__]                              Date: [DD-MM-YYYY]

To,
[Name of Operational Creditor]
[Address] / [Email].

Sub: Reply to your Demand Notice dated [____] issued under Section 8
     of the Insolvency and Bankruptcy Code, 2016 — Notice of EXISTENCE
     OF DISPUTE under Section 8(2)(a).

Ref: Your Demand Notice in Form 3/4 dated [____] claiming ₹[amount].

Sir/Madam,

1. We are in receipt of your captioned demand notice and, within the
   period of TEN days prescribed under Section 8(2) of the Code, bring
   to your notice the EXISTENCE OF A DISPUTE in respect of the alleged
   operational debt.

2. The claim is denied and disputed for, inter alia, the following
   reasons:

   (a) The goods/services supplied under Invoice(s) No. [___] were
       [defective / deficient / not as per the agreed specifications /
       delivered late], as intimated to you vide our letter/email dated
       [____] (copy enclosed), well BEFORE the receipt of the demand
       notice.

   (b) A dispute regarding quality/quantity/short-supply is pending
       between the parties, evidenced by [correspondence dated ___ /
       debit note No. ___ dated ___ / arbitration notice dated ___ /
       Suit/Petition No. ___ pending before ___].

   (c) The amount claimed is incorrect. Against your claim of ₹[amount],
       we have already paid ₹[amount] vide [UTR/cheque ___ dated ___],
       and are entitled to set-off / adjust ₹[amount] towards
       [damages / defective supply / debit notes].

3. In view of the aforesaid PRE-EXISTING DISPUTE, which is not spurious,
   hypothetical or illusory, no amount is admittedly due and payable, and
   the notice is not maintainable. Any application under Section 9 of the
   Code would be liable to be rejected under Section 9(5)(ii)(d).

4. Records of the pending dispute are enclosed. This reply is issued
   without prejudice to our rights and contentions.

Yours faithfully,

For [Corporate Debtor]

____________________
[Name & Designation, Authorised Signatory]

Encl.: (1) Copy of correspondence/emails raising the dispute (pre-dating
the demand notice); (2) Debit notes / quality reports; (3) Proof of
payments made; (4) Copy of pending suit/arbitration, if any.