The Insolvency and Bankruptcy Board of India vide its notification dated 7th February 2022 published “Frequently Asked Questions (FAQs) on Insolvency and Bankruptcy Code, 2016”.
The current version of the FAQs was released with an objective of enriching the existing version of the publication that was released by ICAI in2017. The current version strives to create awareness and disseminate knowledge about the code in an easy-to-understand FAQs format.
The revised edition offers insights that cover the developments incorporated in the Code and the subordinate legislation spanning this period. It also offers thematic and issue-wise jurisprudence for an extensive comprehension of legal positions of various concerns with respect to the Code. The publication aims to presents itself as a guide to professionals and relevant stakeholders of the IBC for unambiguous interpretation and enhanced understating of the insolvency laws.
The revised edition clarifies that the provisions pertaining 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 way of notification, specify the minimum amount of default of higher value which shall not be more than one crore rupees.
Further, the Notification dated 24.03.2020 which was issued by the Ministry of Corporate Affairs, wherein the minimum amount of default limit was specified as ₹ 1 crore, shall be prospective in nature.
Further it has also been clarified that the National Company Law Tribunal is the Adjudicating Authority for the insolvency resolution and liquidation process of a corporate person.