Section 46 of IBC – Insolvency and Bankruptcy Code, 2016 : Relevant period for avoidable transactions

The Insolvency and Bankruptcy Code, 2016 Part-II Insolvency Resolution and Liquidation for Corporate Persons Chapter-III Liquidation Process […]

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The Insolvency and Bankruptcy Code, 2016

Part-II Insolvency Resolution and Liquidation for Corporate Persons

Chapter-III Liquidation Process

Section 46: Relevant period for avoidable transactions.

*46. (1) In an application for avoiding a transaction at undervalue, the liquidator or the resolution professional, as the case may be, shall demonstrate that—

(i) such transaction was made with any person within the period of one year preceding the insolvency commencement date; or

(ii) such transaction was made with a related party within the period of two years preceding the insolvency commencement date.

(2) The Adjudicating Authority may require an independent expert to assess evidence relating to the value of the transactions mentioned in this section.


Reference

*Effective from 15.12.2016.


Judicial Pronouncements:

J1. For interpretation of the Section 43, 45, 46 and 66, refer Anuj Jain IRP for Jaypee Infratech Ltd. v. Axis Bank Ltd. (2020) ibclaw.in 06 SC.



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