Question

When shall a transaction be considered undervalued transaction under the IBC?

Q: Answer-When shall a transaction be considered undervalued transaction under the IBC?

Section 45-Avoidance of undervalued transactions 2 A transaction shall be considered undervalued where the corporate debtormdash a makes a gift to a person or b enters into a transaction with a person which involves the transfer of one or more assets by the corporate debtor for a consideration the value of which is significantly less than the value of the consideration provided by the corporate debtor, and such transaction has not taken place in the ordinary course of business of the corporate debtor.

A Where the corporate debtor makes a gift to a person

B Where the corporate debtor enters into a transaction with a person involving the transfer of assets for a consideration the value of which is significantly less than the value of the consideration provided by the corporate debtor

C Where the corporate debtor enters into a transaction with a person involving the transfer of assets for a consideration the value of which is significantly more than the value of the consideration provided by the corporate debtor, and such transaction has not taken place in the ordinary course of business of the corporate debtor

D Either a or b

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