Srishti Maurya ( Jaunpur )
25-Sep-2025 10:52 AM
Practice questions on financial creditor
Ques : for calculating 1 cr. What we will consider, Total defaulted debt or Total debt. In case debt defaut FC1 :AM bank 30 lakhs. ✓ FC 2:BN finance 40 lakhs. ✓. Defaulted debt : 70 lak FC3 : CP bank 1 cr . × Total debt : 1 cr. 70 lakh Can CP bank initiate cirp ??
Under Section 7, the threshold of ₹1 crore is based on total amount in default, not on total debt owed; hence CP Bank cannot initiate CIRP since only ₹70 lakh is in default.
Answer given by Shubhamm Sir at 14-Oct-2025 09:48 PM