Resolution of Stressed Assets under the Insolvency and Bankruptcy Code 2016
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Free sample — 8 of 65 rapid-fire Q&A cards.
What is the minimum default threshold for a financial creditor to file an application under Section 7 of IBC 2016 for initiation of CIRP?
The minimum default threshold is Rs 1 crore, revised in March 2020 via MCA notification.
Under IBC 2016, what was the original minimum default threshold before March 2020 for filing CIRP by a financial creditor?
Rs 1 lakh
Under IBC 2016, which section allows a financial creditor to initiate Corporate Insolvency Resolution Process against a corporate debtor?
Section 7 of the Insolvency and Bankruptcy Code 2016 allows a financial creditor to initiate CIRP against a corporate debtor.
Which MCA notification revised the default threshold for initiating CIRP to Rs 1 crore?
MCA notification dated March 24, 2020
What is the full form of CIRP under the Insolvency and Bankruptcy Code 2016?
CIRP stands for Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016.
Why was the default threshold for CIRP raised to Rs 1 crore in 2020?
To shield MSMEs from frivolous insolvency action
Who can file an application under Section 7 of IBC 2016 for initiation of CIRP?
A financial creditor can file an application under Section 7 of IBC 2016 for initiation of the Corporate Insolvency Resolution Process.
Under Section 53 of IBC 2016, which dues rank first in the liquidation waterfall?
Insolvency resolution costs and liquidator fees
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