IMPACT OF REVISION OF THRESHOLD OF DEFAULT UNDER IBC ON OPERATIONAL CREDITORS – Eshwars
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IMPACT OF REVISION OF THRESHOLD OF DEFAULT UNDER IBC ON OPERATIONAL CREDITORS

Authored by Aanchal M. Nichani

On 24th March 2020, the Central Government by notification, revised the threshold limit of the amount of default for the applicability of the provisions of the Insolvency and Bankruptcy Code, 2016, from Rs. 1 Lakh to Rs. 1 crore.

The said revision in the threshold has come in the wake of the on-going crisis and battle with the Covid-19 outbreak. The intention of the said notification is to ease out the pressure on small sized companies and MSME and not drive them into insolvency and bankruptcy.

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