Explainer · Insolvency · IBC
Form 3 and Form 4 for Operational Creditors (IBC) (2026)
Operational creditors often trip over a simple question: which form do I use to demand payment before going to the tribunal? The Code gives two, Form 3 and Form 4, and people confuse them, or confuse them with the claim forms used after a company is already in insolvency. They are not the same. Form 3 and Form 4 are the demand notice formats that start the operational creditor route under Section 8. This explainer, for suppliers, vendors and their advisers, sets out what each form is, when to use which, and where they fit in the wider insolvency process. It is general information, not legal advice. Last verified October 2026.
- Source: Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, giving effect to Section 8.
- Form 3: a demand notice, used where the debt is not invoice based or you present the records of default.
- Form 4: a notice with a copy of the invoice attached, for the common invoice based trade debt.
- Then Form 5: the Section 9 application to the NCLT, filed after the 10-day window passes with no payment or genuine dispute.
- Not the claim forms: Form B (operational) and Form C (financial) under the CIRP Regulations come after a company is admitted, not before.
01The short answer
Form 3 and Form 4 are the two demand notice formats an operational creditor can use under Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Form 3 is a demand notice. Form 4 is a notice with a copy of the invoice attached. Both serve the same purpose: to make the demand required by Section 8 before an operational creditor can file for insolvency.
Use Form 3 where the debt is not based on an invoice, or where you set out the records of default. Use Form 4 where the debt is invoice based and you attach the invoice. Either way, the notice gives the company 10 days to pay or raise a dispute, after which the operational creditor can file a Section 9 application in Form 5.
02Where these forms come from
The forms are not in the Code itself. They are prescribed by Rule 5 of the Application to Adjudicating Authority Rules, 2016, which gives effect to Section 8 of the Insolvency and Bankruptcy Code, 2016. Section 8 says an operational creditor must deliver a demand notice on a default. Rule 5 then sets out the two formats that notice can take, and how it must be delivered.
So the forms are the practical shape of a statutory step. Getting the form and its particulars right is what makes the demand valid, and a valid demand is the condition for everything that follows.
03Form 3: the demand notice
Form 3 is a demand notice in its own right. It sets out the operational debt, the amount in default, the date the debt became due and the date of default, and the particulars of the transaction, with the supporting documents and records relied on. It is the format to reach for when the debt is not simply an invoice, or where you want to present the full record of default rather than a single bill.
The form requires you to be specific. It asks for the details of the transaction, the existence and amount of the debt, and the documents that prove it. A Form 3 notice that is vague on the figures or the default date gives the company room to contest, so the particulars have to be clean.
04Form 4: the notice with an invoice
Form 4 is a notice to which a copy of the invoice demanding payment is attached. It is the format for the common case: a trade debt evidenced by one or more invoices that the company has not paid. The invoice carries much of the detail, and Form 4 is the covering notice that turns the unpaid invoice into a Section 8 demand.
Form 3 is a standalone demand notice. Form 4 is the covering notice for an unpaid invoice. Both start the same 10-day clock under Section 8.
Because most operational debts are invoice based, Form 4 is the one many creditors use. The key is that the invoice attached is genuine, matches the demand, and shows the amount and the default clearly.
05Which form to use
The choice follows the nature of the debt:
| If the debt is... | Use |
|---|---|
| Based on unpaid invoices | Form 4, with the invoice attached |
| Not invoice based, or shown by other records | Form 3, a standalone demand notice |
Tribunals have treated the two as serving the same substantive purpose, and have accepted a notice that conveys the debt and default properly even where the exact choice of form was argued. Still, the sensible course is to match the form to the debt, and to make sure every required particular is present. For the step by step drafting, see how to draft a Section 8 demand notice.
06How they fit the Section 8 to Section 9 route
Form 3 or Form 4 is the first step in the operational creditor route:
- Serve the demand in Form 3 or Form 4 under Section 8.
- Wait 10 days for the company to pay or raise a genuine dispute.
- If there is no payment and no genuine dispute, file the Section 9 application in Form 5 before the National Company Law Tribunal.
So Form 3 and Form 4 are about the demand, and Form 5 is about the petition. They are different stages, and a defect at the Form 3 or Form 4 stage can sink the Form 5 petition that depends on it.
07A common confusion to avoid
Do not mix up these demand notice forms with the claim forms used once a company is already in insolvency. After a company is admitted, creditors file proof of claim with the resolution professional: an operational creditor uses Form B, and a financial creditor uses Form C, under the separate CIRP Regulations, 2016.
Form 3 and Form 4 come before admission, to start the operational creditor route. The claim forms come after admission, to record what you are owed in a process that has already begun. For filing a claim once a company is in insolvency, see how to submit a claim as an operational creditor.
08Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
Choosing and filling the form is for you and your advisers, which Claw does not do. Where Claw helps is in checking the company and following the matter. Claw, with ClawScore, finds and tracks a company insolvency across NCLT, NCLAT, the Insolvency and Bankruptcy Board of India and Ministry of Corporate Affairs records, with alerts and monitoring, across 9,102 courts, benches and forums, so you can see whether the company already faces insolvency or disputes before you serve a notice, and follow the petition after. Its Legal GPT researches across 30 crore+ judgments, with Supreme Court decisions from 1950 and High Court decisions from 1990, so counsel can see how tribunals have treated the choice of form and defective demands before. Results return in under 5 seconds, and Claw does not train its AI models on your documents. To check a company or opponent, run a case search across Indian courts by name. A clean result means nothing was found on the forums and date searched, namesakes are possible, and this is general information, not legal advice.
Related reading: how to draft a Section 8 demand notice and how a financial creditor submits a claim.
09Sources and further reading
- India Code (Insolvency and Bankruptcy Code, 2016, Sections 8 and 9): indiacode.nic.in
- Insolvency and Bankruptcy Board of India (rules and forms): ibbi.gov.in
- Ministry of Corporate Affairs: mca.gov.in
- Claw: clawlaw.in
This explainer is general information, not legal advice. The rules and forms govern; use the current official form and confirm the particulars before filing.
10Frequently asked questions
What are Form 3 and Form 4 under the IBC?
They are the two demand notice formats an operational creditor can use under Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Form 3 is a demand notice, and Form 4 is a notice with a copy of the invoice attached. Both make the Section 8 demand that must precede an operational creditor insolvency petition.
When do I use Form 3 and when Form 4?
Use Form 4 where the operational debt is based on unpaid invoices and you attach a copy of the invoice, which covers most trade debts. Use Form 3, a standalone demand notice, where the debt is not invoice based or where you set out the records of default. Tribunals treat both as serving the same purpose, so the priority is accurate particulars of the debt and default.
What comes after Form 3 or Form 4?
After serving the demand, the company has 10 days to pay or raise a genuine dispute. If it does neither, the operational creditor files a Section 9 application in Form 5 before the National Company Law Tribunal. Form 3 and Form 4 are about the demand, Form 5 is the petition, and a defect in the demand can undermine the petition that relies on it.
Are Form 3 and Form 4 the same as the claim forms?
No. Form 3 and Form 4 are demand notices served before a company is admitted into insolvency. The claim forms come after admission, when creditors file proof of claim with the resolution professional: an operational creditor uses Form B and a financial creditor uses Form C under the separate CIRP Regulations, 2016. They are different stages and should not be confused.
Where are Form 3 and Form 4 prescribed?
In Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, which gives effect to Section 8 of the Insolvency and Bankruptcy Code, 2016. The rule also sets out how the notice must be delivered, for example at the registered office, by registered or speed post with acknowledgement, or by email to a director or key managerial personnel.