—(1) A statutory demand shall be in Form 1 and shall be dated and signed by the creditor himself or by a person authorised to make the demand on the creditor’s behalf.
(2) The statutory demand shall state the actual amount of the debt that has accrued as of the date of the demand.
(3) If the amount claimed in the statutory demand includes interest, penalties, charges or any pecuniary consideration in lieu of interest, it shall separately identify the actual amount that has accrued as at the date of the demand and the rate at which and the period for which it was calculated.
(4) The statutory demand shall state the consideration for the debt or, if there is no consideration, the way in which the debt arises and —
if the debt is founded on a judgment or an order of a court, it must give details of the judgment or order, including the action under which the judgment or order was obtained and the date of the judgment or order; and
if the debt is founded on grounds other than a judgment or an order of a court, it must give such details as would enable the debtor to identify the debt.
(5) If the creditor holds any property of the debtor or any security for the debt, there shall be specified in the demand —
the full amount of the debt; and
the nature and value of the security or the assets.
(6) The debt of which payment is claimed shall be the full amount of the debt less the amount specified as the value of the security or assets.
—(1) The statutory demand must include an explanation to the debtor of the following matters:
the purpose of the demand, and the fact that if the debtor does not comply with the demand, bankruptcy proceedings may be commenced against him;
the time within which the demand must be complied with if that consequence is to be avoided;
the methods of compliance available to the debtor; and
the debtor’s right to apply to the court to set aside the statutory demand.
(2) The statutory demand shall specify one or more named individuals with whom the debtor may, if he wishes, enter into communication for purposes of securing or compounding for the debt to the satisfaction of the creditor, and the address and telephone number (if any) of any individual so named in the demand must be given.
(3) The debtor shall not be under any obligation to make inquiries in respect of the statutory demand except for the purposes given in paragraph (2).
—(1) The creditor shall take all reasonable steps to bring the statutory demand to the debtor’s attention.
(2) The creditor shall make reasonable attempts to effect personal service of the statutory demand.
(3) Where the creditor is not able to effect personal service, the demand may be served by such other means as would be most effective in bringing the demand to the notice of the debtor.
(4) Substituted service under paragraph (3) may be effected in the following manner:
by posting the statutory demand at the door or some other conspicuous part of the last known place of residence or business of the debtor or both;
by forwarding the statutory demand to the debtor by prepaid registered post to the last known place of residence, business or employment of the debtor;
where the creditor is unable to effect substituted service in accordance with sub-paragraph (a) or (b) by reason that he has no knowledge of the last known place of residence, business or employment of the debtor, by advertisement of the statutory demand in one or more local newspapers, in which case the time limited for compliance with the demand shall run from the date of the publication of the advertisement; or
such other mode which the court would have ordered in an application for substituted service of an originating summons in the circumstances.
(5) Where a statutory demand is to be served out of jurisdiction, the period to be stipulated in the statutory demand for compliance and setting aside of the demand shall not be less than 21 days from the date on which the demand is served or deemed in accordance with these Rules to be served on the debtor.
(6) A creditor shall not resort to substituted service of a statutory demand on a debtor unless —
the creditor has taken all such steps which would suffice to justify the court making an order for substituted service of a bankruptcy application; and
the mode of substituted service would have been such that the court would have ordered in the circumstances.
(7) Where the statutory demand is made against a firm, personal service of the statutory demand shall be deemed to have been effected on all the partners in the firm if it is served at the principal place of business of the firm in Singapore on any one of the partners, or on any person having at the time of service control or management of the business of the firm thereat.
—(1) Subject to paragraph (2), the debtor who has been served with a statutory demand may —
within 14 days; or
where the demand was served outside jurisdiction, within 21 days,
from the date on which the demand is served or deemed in accordance with these Rules to be served on him, apply to court by way of originating summons for an order setting aside the statutory demand.
(2) No appearance need be entered to an originating summons under this rule.
(3) The court may, upon the application of the debtor, allow the debtor an extension of time to make his application to set aside the statutory demand.
(4) Unless the court otherwise orders, the time limited for the debtor to comply with the statutory demand shall cease to run as from the date on which the application is filed in court.
(5) The application shall be supported by an affidavit —
specifying the date on which the statutory demand came into the debtor’s hands;
stating the grounds on which the statutory demand should be set aside; and
exhibiting a copy of the statutory demand.
(6) The application and the affidavit in support shall be filed at the same time and shall be served on the creditor within 3 days from the date of filing.
—(1) On the hearing of the application, the court may either summarily determine the application or adjourn it, giving such directions as it thinks appropriate.
(2) The court shall set aside the statutory demand if —
the debtor appears to have a valid counterclaim, set-off or cross demand which is equivalent to or exceeds the amount of the debt or debts specified in the statutory demand;
the debt is disputed on grounds which appear to the court to be substantial;
it appears that the creditor holds assets of the debtor or security in respect of the debt claimed by the demand, and either rule 94(5) has not been complied with, or the court is satisfied that the value of the assets or security is equivalent to or exceeds the full amount of the debt;
rule 94(1) has not been complied with; or
the court is satisfied, on other grounds, that the demand ought to be set aside.
(3) If the court dismisses the application, it shall make an order authorising the creditor to file a bankruptcy application either on or after the date specified in the order.