MCA Notified Amendment to Section 4 of IBC, 2016 on dt. 24.03.2020

MCA Amends Section 4 of Insolvency and Bankruptcy Code, 2016

Threshold of default under Section 4, IBC for initiation of insolvency proceedings raised to Rs 1 crore

·         Overview

MINISTRY OF CORPORATE AFFAIRS (MCA) vide notification / Gazette id No. CG-DL-E-24032020-218898            and S.O. 1205(E) issued and publish dated 24^th March 2020, has amended section 4 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016.

·         Applicability:

They shall come into force on the date of their publication in the Official Gazette, i.e. 24^th day of March, 2020.

·         Notification Text

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.

·        Change via this amendment –

SEction 4(1) of IBC, 2016 - Application of this Part-II (INSOLVENCY RESOLUTION AND LIQUIDATION FOR CORPORATE PERSONS):

Before Amendment	After Amendment
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:	This Part shall apply to matters relating to the insolvency and liquidation of corporate debtors where the minimum amount of the default is one crore rupees:

Source:

http://egazette.nic.in/WriteReadData/2020/218898.pdf           

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