Statutory Meaning & Definition
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).
Frequently Asked Questions (FAQs)
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).
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.
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 Circulars
Recent analysis and regulatory updates related to IBC:
Subhash Chandra Personal Insolvency: ₹22,006 Crore Claims, ₹6.5 Crore Repayment Plan and the Related-Party Voting Question — Explained
Published: 3 November 2026
IBBI CIRP Circulars 109 and 110 of 2026: New Form CA for Homebuyers and RERA Disclosure Rules for Real Estate Insolvency
Published: 31 October 2026
IBBI CIRP Fifth Amendment Regulations 2026: Real Estate Projects Can Be Excluded from Insolvency — Home Delivery First
Published: 31 October 2026
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