Extortionate credit transactions

A transaction shall be considered an extortionate credit transaction under section 50(2) where the terms- (a) require the corporate person to make exorbitant payments in respect of the credit provided; or (b) are unconscionable under the principles of law relating to contracts. 16 Subs. by Notification No. IBBI/2019-20/GN/REG054, dated 15th Jan., 2020 (w.e.f. 15.01.2020). Before substitution, it stood as: “Register of unclaimed dividends and undistributed properties deposited in accordance with Regulation 39; and”. 17 Substituted by Notification No. IBBI/2022-23/GN/REG.081., dated 5th April, 2022 (w.e.f. 05-04- 2022). Before substitution, it stood as: “corporate debtor”.