Question
What is the default amount for initiating the CIRP as
provided under the IBC?Solution
IBC Section 4-Application of this Part: (1) This Part shall apply to matters relating to the insolvency and liquidation of corporate debtors where the minimum amount of the default is one lakh rupees: Provided that the Central Government may, by notification, specify the minimum amount of default of higher value which shall not be more than one crore rupees:Â Prescribed: Â the Central Government hereby specifies one crore rupees as the minimum amount of default for the purposes of the said section.
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