Question

Under the IBC, which of the following is NOT a condition

Q: Answer-Under the IBC, which of the following is NOT a condition for MSMEs to qualify for insolvency resolut...

Under the IBC, there is no requirement for MSMEs to have been in continuous operation for a specific period. The key criteria for initiating the insolvency process are defaulting on debts and meeting the 1 crore default threshold. MSMEs can qualify for resolution or liquidation even if they have been operational for a short period.

for MSMEs to qualify for insolvency resolution?

A The MSME must be a registered entity with a valid business license

B The MSME must have defaulted on its debts

C The MSME must have liabilities greater than ₹1 crore

D The MSME must demonstrate a viable business plan for restructuring

E The MSME must have been in continuous operation for at least 5 years

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Under the IBC, which of the following is NOT a condition

Solution