Tuesday, March 24, 2020

IBC Updates

MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 24th March, 2020 S.O. 1205(E).—
In exercise of the powers conferred by the proviso to section 4 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Central Government hereby specifies one crore rupees as the minimum amount of default for the purposes of the said section.

[F. No. 30/9/2020-Insolvency]
GYANESHWAR KUMAR SINGH, Jt. Secy.


Section 4 provides  the minimum default  amount of Rs.1 lakh  to initiate CIRP process and liquidation of Corporate debtor  which  Central govt may, by notification, specify the minimum  amount of default of higher value  which shall not be  more than one crore rupees

Accordingly  Central government has notified the threshold limit of Rs.1 crore for default to initiate CIRP process  and liquidation of Corporate debtor in respect of Section 7, 9  and 10 of IBC code 2016

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