Question
Under the IBC, which of the following is NOT a condition
for MSMEs to qualify for insolvency resolution?Solution
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.
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