The Central Government has notified a raise in the threshold of default which was earlier at Rs. 1 lakh under Section 4 of IBC, 2016 to Rs. 1 crore for the initiation of insolvency proceedings under the Code. As per the gazette notification, it has been said that: “In the exercise of the powers conferred by the proviso to Section 4 of the Insolvency & Bankruptcy Code, 2016, the Central Government hereby specifies one crore rupees as the minimum amount of default for the purposes of this section. The raise in the threshold will help to prevent triggering of insolvency proceedings against MSMEs.
This was announced by our Finance Minister Nirmala Sitharaman while speaking of various relief- oriented steps being taken by the Union Government in view of the lockdown brought in India due to the spread of Novel Coronavirus (COVID- 19).
Your email address will not be published. Required fields are marked *