valid as on 11/04/2024

2.5.11:Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

11. Extortionate credit transactions.

A transaction shall be considered an extortionate credit transaction under section 50(2) where the terms-

(1) require the corporate debtor to make exorbitant payments in respect of the credit provided; or

(2) are unconscionable under the principles of law relating to contracts.

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