Record of Default under Section 7 application of IBC: Whether Mandatory or Directory? – By Modit Mendiratta

Understanding the nature of the "Record of Default" provision is essential, as it sets the threshold for initiating the CIRP. Whether it is mandatory or directory has significant implications for creditors and debtors, impacting the initiation and outcome of insolvency proceedings. This article explores the arguments and judicial interpretations surrounding the provision, shedding light on its implications within the broader IBC framework.