The Insolvency and Bankruptcy Code, 2016
IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
Chapter-II General
Regulation 5: Extortionate credit transaction.
5. A transaction shall be considered extortionate under section 50(2) where the terms:
(1) require the corporate debtor to make exorbitant payments in respect of the credit provided; or
(2) are unconscionable under the principles of law relating to contracts.
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