Notification under section 4 of the Insolvency and Bankrutpcy Code, 2016

Last updated: 26 March 2020

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The Ministry of Corporate Affairs has issued a notification under the Insolvency and Bankruptcy Code, 2016. This notification specifies that the minimum amount of default required to initiate insolvency proceedings has been raised to one crore rupees. This change, effective from March 24, 2020, alters the threshold for corporate insolvency.

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 24th March, 2020

S.O. 1205(E).—In exercise of the powers conferred by the proviso to section 4 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Central Government hereby specifies one crore rupees as the minimum amount of default for the purposes of the said section.

[F. No. 30/9/2020-Insolvency]

GYANESHWAR KUMAR SINGH, Jt. Secy.

FAQ :

This notification specifies the minimum amount of default for the purposes of section 4 of the Insolvency and Bankruptcy Code, 2016.

The new minimum amount of default specified is one crore rupees.

This notification is related to the Insolvency and Bankruptcy Code, 2016.

This notification was issued on the 24th March, 2020.

This notification was issued by the Ministry of Corporate Affairs, Central Government.

Notification No : CG-DL-E-24032020-218898

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