Avoidance transaction

An avoidance transaction is a transaction of a corporate debtor that the resolution professional examines in a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016, and on which the professional files an application.

The timetable is set by the Board's regulations, and it bites earlier than the Code. As at 21 September 2026, the resolution professional must form an opinion on avoidance transactions by the seventy-fifth day from commencement, determine them by the hundred and fifteenth day and file by the hundred and thirtieth. The same professional now also carries the duty, under the Board's circular of 9 September 2026, to apply to the adjudicating authority where a process appears to serve a fraudulent or malicious purpose.