A demand notice is a legal intimation of debt owed and the last request to repay the amount failing which legal consequences follow.
In cases relating to the Debt Recovery Tribunal or under Section 13(2) in The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFESI ACT) it is mandated that the creditor should send a notice in writing asking the borrower to discharge its liability.
(2) 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).SARFESI ACT
Download Demand Notice Sample Format
A sample format of the Demand notice can be found below. you can edit the details as far as applicable and send them right away or as per the instructions of your advocate.
You can copy from the below:
Bhoj Bengal Industry
Prop. Sri Ramendra Kumar Paul
54, Jayanti Nagar, Pachanan Saroni,
Near Krishna Road, Siliguri
SUBJECT: Final Recall Notice
Under the instructions from and on behalf of my client SBI,, SME Centre, Siliguri, Homeland’ 1 Floor, Sevoke Road, Siliguri 734008, Dist.-Jalpaiguri, West Bengal.
I address you as follows:
You have been enjoying an SBI Cash Credit loan of Rs. 4,00,000/ (Rupees Four Lacs) only on 26/02/2016 from SMECC Siliguri, Evershine Apartments, Sky Star Building, Sevoke Road, Siliguri and you executed various documents as primary security along with other documents for your loan.
You availed of the said facilities through Cash Credit Loan account being No. 4512458745 opened in your name. You failed to conduct the said facilities in accordance with the terms and conditions on which the said Loan was sanctioned and there was an irregularity in the said account. The said account was classified as N.P.A (Non-Performing Assets) since 08.01.2020 In spite of repeated demands and requests you did not take any suitable and effective steps to liquidate the said Loan account.
Notice is therefore given to you demanding the payment of said Cash Credit Loan of Rs.5,25,525.00/- (Rupees Five Lacs Twenty Five Thousand Five Hundred and Twenty Five) only inclusive of interest calculated up to 23.08.2021 immediately within 7 (seven) days from the date hereof with further interest on the date of actual payment failing which appropriate legal action will be taken against you for recovery of aforesaid a sum of Rs.5,25,525.00/- (Rupees Five Lacs Twenty Five Thousand Five Hundred and Twenty Five) only with further interest from 24.08.2021 till realization at the agreed rate.
Please comply with the demand under this notice and avoid all unpleasantness. In case of non-compliance, further needful action will be resorted to, holding you liable for all costs and consequences.
Please note that in case if a case is filed, you shall also be held responsible and liable to pay all costs, charges, and expenses that will be incurred by my client on that behalf.
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Things you should clearly mention in your Notice
- The date when the debt agreement or loan was undertaken
- The Amount due to be recovered
- The failed dates of repayment or default date
- When the cause of action arose
- Full name and address of the defaulter
- Full name and address of the person from whom loan was taken
- Any other details of the liability
- Assets mortgaged details
- Rate and total amount of interest accrued for non payment.
- Consequences for non payment within stipulated time.
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