Extortionate credit transactions: remedy allows avoidance and modification of oppressive loan terms by insolvency practitioners. Applications under the IBC enable the liquidator or resolution professional to seek avoidance of extortionate credit transactions entered into by the corporate debtor within the relevant pre insolvency period where terms required exorbitant payments or were unconscionable. The Adjudicating Authority, if satisfied, may restore the pre transaction position, set aside the debt, modify terms, require repayment by recipients, or order relinquishment of security interests; transactions compliant with applicable financial services law are excluded.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Extortionate credit transactions: remedy allows avoidance and modification of oppressive loan terms by insolvency practitioners.
Applications under the IBC enable the liquidator or resolution professional to seek avoidance of extortionate credit transactions entered into by the corporate debtor within the relevant pre insolvency period where terms required exorbitant payments or were unconscionable. The Adjudicating Authority, if satisfied, may restore the pre transaction position, set aside the debt, modify terms, require repayment by recipients, or order relinquishment of security interests; transactions compliant with applicable financial services law are excluded.
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