Question

    What is the minimum amount of default specified by the

    Central Government for initiating insolvency and liquidation proceedings under IBC?
    A ₹50 lakh Correct Answer Incorrect Answer
    B ₹75 lakh Correct Answer Incorrect Answer
    C ₹1 crore Correct Answer Incorrect Answer
    D ₹1.5 crore Correct Answer Incorrect Answer
    E ₹2 crore Correct Answer Incorrect Answer

    Solution

    (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. In exercise of the powers conferred by the proviso to section 4 of the IB Code, 2016, 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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