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PART II INSOLVENCY RESOLUTION AND LIQUIDATION FOR CORPORATE PERSONS · CHAPTER III LIQUIDATION PROCESS

Section 46: Relevant period for 1[undervalued] transactions

The Insolvency and Bankruptcy Code, 2016

(1) In an application for 2[avoidance of an undervalued transaction], the liquidator or the resolution professional, as the case may be, shall demonstrate that—

(i) such transaction was made with any person within the 3[period starting from] one year preceding the 4[initiation date and ending on the insolvency commencement date]; or

(ii) such transaction was made with a related party within the 3[period starting from] two years preceding the 4[initiation date and ending on the insolvency commencement date].

(2) The Adjudicating Authority may require an independent expert to assess evidence relating to the value of the transactions mentioned in this section.

Footnotes in the official text

  1. 1.Subs. by Act 6 of 2026, s. 27, for “avoidable” (w.e.f. 26-05-2026).
  2. 2.Subs. by s. 27, ibid., for “avoiding a transaction at undervalue” (w.e.f. 26-05-2026).
  3. 3.Subs. by s. 27, ibid., for “period of” (w.e.f. 26-05-2026).
  4. 4.Subs. by s. 27, ibid., for “insolvency commencement date” (w.e.f. 26-05-2026).

Practise questions on Insolvency and Bankruptcy Code