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IBC

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

What is 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).

What is the significance of Avoidance Transactions under IBC?

Avoidance Transactions is significant under IBC because it refers to: 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).

Who does Avoidance Transactions apply to?

Avoidance Transactions under IBC applies to companies, professionals, and individuals involved in IBC-related compliance and regulatory matters in India. Specifically: Transactions that can be set aside by the liquidator or RP under IBC including preferential transactions (Section 43), undervalued transactions (Secti...

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