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Module: General Practice

Q94: Regarding the "Pre-Packaged Insolvency Resolution Process" (PPIRP) for MSMEs for MSMEs introduced under the Insolvency and Bankruptcy Code, which of the following statements is INCORRECT?

A
It is available only for corporate debtors classified as Micro, Small, or Medium Enterprises.
B
The minimum default amount to trigger PPIRP is Rupees 1 Crore.
C
It is a "Debtor-in-Possession" model, meaning the existing management continues to run the company during the process.
D
The resolution plan must be approved by the Committee of Creditors (CoC) with at least 66% voting share.
✅ Correct Answer: B
The Incorrect Statement is B. The minimum default threshold for PPIRP is Rupees 10 Lakh, not Rupees 1 Crore.
The Rupees 1 Crore threshold applies to the standard Corporate Insolvency Resolution Process (CIRP). PPIRP was designed specifically for MSMEs to be faster and cost-effective.
A key feature is the "Debtor-in-Possession" model (Option C), which allows the promoter to remain in control of operations during the resolution, unlike standard insolvency where a professional takes over.
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