Question
As per the Insolvency and Bankruptcy Code, what is the
minimum amount of default for the insolvency and liquidation of corporate debtors, as specified by the Central Government?Solution
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.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.Â
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