Avoidance Transactions under IBC: Preferential, Undervalued, Extortionate and Fraudulent Transactions
Avoidance transactions under the Insolvency and Bankruptcy Code, 2016 (IBC), can significantly affect corporate insolvency resolution and creditor recovery. Certain transactions may improperly favour selected creditors, transfer assets for inadequate consideration, impose extortionate credit terms, or involve fraudulent trading. However, commercial distress alone does not establish an avoidable transaction. The applicant must identify the correct








