Corporate insolvency threshold applies only when default reaches the minimum amount, with government power to notify a higher limit. The Part governing insolvency resolution and liquidation of corporate persons applies where the minimum amount of default is one lakh rupees. The Central ... Summary
Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019
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Corporate insolvency threshold applies only when default reaches the minimum amount, with government power to notify a higher limit.
The Part governing insolvency resolution and liquidation of corporate persons applies where the minimum amount of default is one lakh rupees. The Central Government may notify a higher default threshold, subject to a ceiling of one crore rupees. A separate notification power applies to the pre-packaged insolvency resolution process for corporate debtors under Chapter III-A, also subject to the same ceiling.
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