IBC1 min read
Avoidance Transactions
Transactions that can be set aside by the liquidator or RP under IBC including preferential transactions (Section 43), undervalued transactions (Section 45), extortionate credit transactions (Section 50), and fraudulent/wrongful trading (Section 66).
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Avoidance Transactions in Indian corporate law?▼
Transactions that can be set aside by the liquidator or RP under IBC including preferential transactions (Section 43), undervalued transactions (Section 45), extortionate credit transactions (Section 50), and fraudulent/wrongful trading (Section 66).
Q2. Why is Avoidance Transactions important for compliance?▼
Avoidance Transactions is governed by the Insolvency and Bankruptcy Code, 2016 and regulated by IBBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Avoidance Transactions?▼
Avoidance Transactions is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with IBC regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to IBC:
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IBBI Valuation Guidelines 2026: Standardised Formats, Coordinating Valuer Framework & 23-Point Report Standard Under IBC
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