Section 4 of Insolvency and Bankruptcy Code, 2016 (IBC): Application of this Part-II (Insolvency Resolution and Liquidation for Corporate Persons)

The Insolvency and Bankruptcy Code, 2016

Part-II Insolvency Resolution and Liquidation for Corporate Persons

Chapter-I Preliminary

Section 4: Application of this Part.

^*4. (1) 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:

Provided that the Central Government may, by notification¹, specify the minimum amount of default of higher value which shall not be more than one crore rupees.

²[Provided further that the Central Government may, by notification, specify such minimum amount of default of higher value, which shall not be more than one crore rupees, for matters relating to the pre-packaged insolvency resolution process of corporate debtors under Chapter III-A.]

Reference

*Effective from 01.12.2016.

1. Increase Limit to Rs. 1 crore vide MCA Notification S.O. 1205(E) dated 24.03.2020.

2. Ins. by the IBC (Amendment) Act, 2021, w.e.f. 04.04.2021.

3. Central Government vide Notification No. S.O. 1543(E) dated 9th April, 2021 specifies ten lakh rupees as the minimum amount of default for the matters relating to the pre-packaged insolvency resolution process of corporate debtor under Chapter III-A of the Code.