Division 1 — Statutory demand
Form and contents of statutory demand
64.—(1)  A statutory demand —
(a)must be in Form PIR-2;
(b)must state the actual amount of the debt that has accrued as at the date of the statutory demand;
(c)if the amount claimed in the statutory demand includes interest, penalties, charges or any pecuniary consideration in lieu of interest, must separately identify the actual amount that has accrued as at the date of the statutory demand and the rate at which and the period for which it was calculated;
(d)must state the consideration for the debt or, if there is no consideration, the way in which the debt arises and —
(i)if the debt is founded on a judgment or an order of a court — 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
(ii)if the debt is founded on grounds other than a judgment or an order of a court — such details as would enable the debtor to identify the debt;
(e)if the creditor making the statutory demand holds any property of the debtor or any security for the debt, must specify —
(i)the full amount of the debt; and
(ii)the nature and value of the property or the security; and
(f)must be dated and signed by the creditor making the statutory demand or a person authorised to make the statutory demand on the creditor’s behalf.
(2)  If the creditor making the statutory demand holds any property of the debtor or any security for the debt, the amount of the debt of which payment is claimed is the full amount of the debt less the amount specified in the statutory demand as the value of the property or security.
Information to be given in statutory demand
65.—(1)  A statutory demand must include an explanation to the debtor of the following matters:
(a)the purpose of the demand, and the fact that if the debtor does not comply with the demand, bankruptcy proceedings may be commenced against the debtor;
(b)the time within which the demand must be complied with if that consequence is to be avoided;
(c)the methods of compliance available to the debtor;
(d)the debtor’s right to apply to the Court to set aside the statutory demand.
(2)  In addition to the information mentioned in paragraph (1), the statutory demand must specify —
(a)one or more named individuals with whom the debtor may, if the debtor wishes, enter into communication for purposes of securing or compounding for the debt to the satisfaction of the creditor; and
(b)the address and telephone number (if any) of any individual so named in the demand.
(3)  The debtor is not under any obligation to make inquiries in respect of the statutory demand except for the purposes given in paragraph (2).
Requirements as to service of statutory demand
66.—(1)  A creditor making a statutory demand must —
(a)take all reasonable steps to bring the statutory demand to the debtor’s attention; and
(b)make reasonable attempts to effect personal service of the statutory demand.
(2)  Where a creditor is not able to effect personal service of a statutory demand, the statutory demand may be served by such other means as would be most effective in bringing the statutory demand to the notice of the debtor.
(3)  Substituted service under paragraph (2) may be effected by any of the following modes:
(a)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;
(b)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;
(c)where the creditor is unable to effect substituted service in accordance with sub‑paragraph (a) or (b) by reason that the creditor 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 starts to run after the date of the publication of the advertisement;
(d)such other mode which the Court would have ordered in an application for substituted service of an originating summons in the circumstances.
(4)  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 must not be less than the following period after the date on which the demand is served or deemed in accordance with these Rules to be served on the debtor:
(a)in a case where the debtor is served or deemed to be served with a statutory demand during the prescribed period under the COVID‑19 (Temporary Measures) Act 2020 (Act 14 of 2020) — 6 months;
(b)in any other case — 21 days.
(5)  A creditor must not resort to substituted service of a statutory demand on a debtor unless —
(a)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
(b)the mode of substituted service would have been such that the Court would have ordered in the circumstances.
(6)  Where a statutory demand is made against a firm, personal service of the statutory demand is 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 —
(a)any one of the partners; or
(b)any person having (at the time of service) control or management of the business of the firm in Singapore.
(7)  If the creditor is unable to serve the statutory demand on the firm as required under paragraph (6), the creditor may resort to substituted service in accordance with paragraphs (2) to (5) as if the statutory demand is against each of the partners in the firm.
Application to set aside statutory demand
67.—(1)  A debtor who has been served with a statutory demand may apply by way of originating summons to the Court within the applicable period set out in paragraph (2) for an order setting aside the statutory demand.
(2)  The applicable period for the purposes of paragraph (1) is the following period after the date on which the statutory demand is served or deemed in accordance with these Rules to be served on the debtor:
(a)in a case where the debtor was served or deemed to be served with a statutory demand during the prescribed period under the COVID‑19 (Temporary Measures) Act 2020 — 6 months;
(b)in any other case —
(i)14 days; or
(ii)where the demand was served outside jurisdiction — 21 days.
(3)  Despite paragraphs (1) and (2), the Court may, upon the application of the debtor, allow the debtor an extension of time to make the debtor’s application to set aside the statutory demand.
(4)  Unless the Court otherwise orders, the time limited for a debtor to comply with the statutory demand served on the debtor ceases to run as from the date on which the debtor files in Court an application under paragraph (1).
(5)  The affidavit supporting an application under paragraph (1) must —
(a)specify the date on which the statutory demand came into the debtor’s hands;
(b)state the grounds on which the statutory demand should be set aside; and
(c)exhibit a copy of the statutory demand.
(6)  Every application under paragraph (1) and the affidavit supporting the application must be filed at the same time and must be served on the creditor in question within 3 days after the date of filing.
Hearing of application to set aside statutory demand
68.—(1)  On the hearing of an application under rule 67, the Court may either summarily determine the application or adjourn it, and may give such directions as it thinks appropriate.
(2)  The Court must set aside a statutory demand if —
(a)the debtor in question appears to the Court 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;
(b)the debt is disputed on grounds which appear to the Court to be substantial;
(c)it appears to the Court that the creditor in question holds property of the debtor or security in respect of the debt claimed by the demand and —
(i)rule 64(1)(e) has not been complied with; or
(ii)the Court is satisfied that the value of the property or security is equivalent to or exceeds the full amount of the debt;
(d)rule 64 has not been complied with and the failure to comply has caused or will cause substantial injustice to the debtor which cannot be remedied by any order of the Court; or
(e)the Court is satisfied, on any other ground, that the demand ought to be set aside.