IBC1 min read
Default
Non-payment of a debt when a whole or any part or instalment of the amount of debt has become due and payable and is not repaid by the debtor. Minimum default threshold for CIRP initiation is ₹1 crore.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Default in Indian corporate law?▼
Non-payment of a debt when a whole or any part or instalment of the amount of debt has become due and payable and is not repaid by the debtor. Minimum default threshold for CIRP initiation is ₹1 crore.
Q2. Why is Default important for compliance?▼
Default 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 Default?▼
Default 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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