Section 4: Application of this Part
(1) This Part shall apply to matters relating to the insolvency and liquidation of corporate debtors where the minimum amount of the default is 1[one crore rupees]:
Provided that the Central Government may, by notification, specify the minimum amount of default of higher value which shall not be more than one crore rupees.
2[ Provided further that the Central Government may, by notification, specify such minimum amount of default of higher value, which shall not be more than one crore rupees, for matters relating to the prepackaged insolvency resolution process of corporate debtors under Chapter III-A]
3[In exercise of the powers conferred by the second proviso to section 4 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), as amended by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 (3 of 2021), the Central Government hereby specifies ten lakh rupees as the minimum amount of default for the matters relating to the pre-packaged insolvency resolution process of corporate debtor under Chapter III-A of the Code.]
Foot Note:
1 Changed from one lakh rupees to one crore rupees vide Gazette Notification dated 24thMarch2020.
2 Inserted by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 with effect from 04th April 2021 and enacted in Insolvency and Bankruptcy Code (Amendment) Act, 2021 with effect from 4th day of April 2021.
3 Inserted by notification number S.O.1543(E) dated 9th April, 2021