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 No. S.O. 1205(E) dated 24th 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. 24th 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: |
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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.
Author Bio
this limit is for all case or for special case which are arise after 24-03-2020. whether this limit is also applicable the cash for which form 3 and 4 already issue earlier to 24-03-2020.