Statutory demand template (Uganda)
In brief
A precedent statutory demand whose non-compliance founds a presumption of inability to pay debts.
When to use this
For an undisputed debt above the Insolvency Act threshold.
When a bespoke document is needed instead: For a genuinely disputed debt — that risks an abuse-of-process finding; sue instead.
The template
A precedent only. Replace every [PLACEHOLDER] with your own details; it contains no real party data. Have it reviewed before use.
Heading
STATUTORY DEMAND
(Under the Insolvency Act, Cap. 108)
To the debtor
TO: [DEBTOR NAME], of [ADDRESS].
1. The debt
1.1 You owe [CREDITOR NAME], of [ADDRESS], the sum of UGX [AMOUNT], being [basis — e.g. the price of goods/services / sums due under the agreement dated [DATE]], which is due and payable and remains unpaid.
2. Demand
2.1 The creditor DEMANDS that, within [the statutory period] of service of this demand, you either pay the said sum or secure or compound it to the creditor’s reasonable satisfaction.
3. Consequence of non-compliance
3.1 If you do not comply, you will be presumed unable to pay your debts, and the creditor may present a [bankruptcy / winding-up] petition against you on that basis.
4. Right to apply to set aside
4.1 You may apply to the court to set aside this demand (for example, if the debt is genuinely disputed or you have a counterclaim) within the time the Act and rules allow.
5. Service & execution
5.1 Dated [DATE]. Creditor / Advocate: ____________ Address for payment and correspondence: [ADDRESS].
5.2 Served on the debtor on [DATE] by [method], proof of which is retained.
Drafting notes
- Undisputed only
- Use a statutory demand only for an undisputed debt that meets the Insolvency Act threshold — a disputed debt risks an abuse finding.
- Form & timing
- Comply with the Act’s form and timing requirements and state the statutory period and set-aside right.
- Service
- Serve properly and keep proof — the consequences flow from valid service.
- Be ready for set-aside
- Anticipate a set-aside application and have evidence the debt is clear and due.
Execution requirements
- The creditor or advocate signs and serves the demand in the prescribed manner.
- Failure to comply with a statutory demand founds a presumption of inability to pay debts (Insolvency Act s.2).
- The debtor may apply to set the demand aside — be ready for that.
Governing law & citations
Governed by the Insolvency Act, Cap. 108 (2023 Revision), ss.2–4.
- Insolvency Act, Cap. 108 (2023 Revision) — ss.2, 3, 4.