The Insolvency and Bnakruptcy Board of India vide its notification dated 7th February 2022 has released a publication titled “Frequently Asked Questions (FAQs) on Insolvency and Bankruptcy Code, 2016”.
The main objective of the publication, which is an enriched version of the publication released by ICAI in 2017, is to create awareness and disseminate knowledge about the code in easy-to-understand FAQs format.
The revised edition covers the developments in the Code and subordinate legislation during the period. It also presents thematic, topic wise jurisprudence for comprehensive understanding of the legal position with respect to various issues under the Code. The book is expected to provide useful guidance to the professionals and other stakeholders of the IBC ecosystem for clear interpretation and enhanced understanding of the insolvency law.
As per the revised edition, it has been clarified, that provisions relating to the insolvency and liquidation of corporate debtors shall be applicable only when the amount of the default is one lakh rupees or more. However, the Central Government may, by notification, specify the minimum amount of default of higher value which shall not be more than one crore rupees.
The Notification dated 24.03.2020 issued by the Ministry of Corporate Affairs, whereby the minimum amount of default limit was specified as ₹ 1 crore, is prospective in nature and not a retrospective one.
Further it has been clarified that the National Company Law Tribunal shall be the Adjudicating Authority for the insolvency resolution and liquidation process of a corporate person.
