Demand notice is a formal communication or intimation by a lender or financial institution regarding the debt owned by the other party. It is a last request to repay the outstanding amount and a legal warning that failing to do so would invite legal consequences.
In cases under Debt Recovery Tribunal or Section 13 (2) of the SARFESI ACT, 2002 (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act), it is compulsory for the creditor to send a written notice to the borrower to repay the loan before initiating any legal action.
The Section states:
“Where any borrower, who is under a liability to a secured creditor under a security agreement, makes any default in repayment of secured debt or any instalment thereof, and his account in respect of such debt is classified by the secured creditor as non-performing asset, then, the secured creditor may require the borrower by notice in writing to discharge in full his liabilities to the secured creditor within sixty days from the date of notice failing which the secured creditor shall be entitled to exercise all or any of the rights under sub-section (4).”
Consequences in case of non-payment within the time frame.
A legal expert will draft a proper demand notice, which will strengthen your case and also invite fruitful response. Online Legal Center offers services for drafting and sending demand notices. You can easily find a lawyer at the Center for your legal need.
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There is no fixed fee for creating and sending a demand notice. It depends on the case, the lawyer, and other such factors.
As per the ruling of Honourable Supreme Court of India, an operational creditor or any authorized person in relation to the creditor or the lawyer on behalf of the creditor can deliver a demand notice.
Please do not panic on receiving a demand notice. Go through the notice properly and see what the demand is. Then, contact a lawyer and let him/her scrutinize the notice and help you formulate an appropriate response or action. Do not ignore demand notice, as this will give the sender an opportunity to take legal action against you. Even if you cannot repay the amount as demanded in the notice, you must still give a professional response and be open for negotiation. A lawyer will tell you the best way to proceed after examining your case and the notice.
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We offer some of the lowest prices in the industry.
Our team of lawyers are certified through the Bar Council of India and have worked on umpteen numbers of cases successfully.
We provide legal guidance + our lawyers serve as pillar of strength to the clients to help them cope with the stress of cases.
We provide round the clock support.
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