A supplier of goods has an unpaid operational debt of ₹2 crore against a corporate debtor. Before filing an application for initiation of corporate insolvency resolution process under s.9 of the Insolvency and Bankruptcy Code 2016, the operational creditor must first:

Section 8 of the Insolvency and Bankruptcy Code 2016 requires an operational creditor, before filing an application for initiation of the corporate insolvency resolution process, to deliver to the corporate debtor a demand notice of unpaid operational debt in the prescribed form, demanding payment of the amount involved. Section 8(1) provides that the notice may be delivered personally, by registered post or by such other mode as prescribed, calling upon the corporate debtor to pay the amount in default within ten days of receipt, with documentation of the transaction and record of default. If the corporate debtor pays within ten days, no application is filed, and if the debt is disputed in good faith, the application may be defeated. A decree, tax certificate, stay application or invocation of a personal guarantee is not the precondition.