Liquidation

For individuals and partnership firms, there is a provision in the code for matters related to fresh start as well as insolvency and bankruptcy of individuals and partnership firms. An individual or a partnership firm can apply for matters in respect to fresh start, insolvency and bankruptcy of individuals and partnership firms where the amount of the default is not less than one thousand rupees. However, the Central Government, by notification can specify the minimum amount of default of higher value which shall not be more than one lakh rupees. The Adjudicating Authority for individuals and partnership firms is the Debt Recovery Tribunal.