Section 11 in 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.
