Kulu Floriculture Private Limited is in the business of floriculture. The investment in plant and machinery is of ₹ 15 lakhs only. It has availed term loan of ₹ 12 lakhs from a bank. The company earned a good profit up t

Kulu Floriculture Private Limited is in the business of floriculture. The investment in plant and machinery is of ₹ 15 lakhs only. It has availed term loan of ₹ 12 lakhs from a bank. The company earned a good profit up to 2 years. However, in the current financial year, its turnover went down due to stiff competition from the local competitors. The loan outstanding of the company also reduced from ₹ 12 lakhs to ₹ 9 lakhs, but during the current year the company could not pay the instalment of the term loan, as a result its account was classified as Non-Performing Asset (NPA) in the books of the bank. The company decides to initiate Pre-Packed Insolvency Resolution Process (PPIRP) and sought an opinion from one of the Insolvency Professional (IP). The IP suggested to convene a meeting of the financial creditors. A declaration was also made by the directors in the meeting. The company also passed a resolution in the general meeting of the members. Based on above background answer the following questions by selecting from the choices given for each question (Write the correct answer in full): For initiation of the PPIRP the minimum amount of default should be : A. ₹ One Lakh B. ₹ 5 Lakh C. ₹ 7 Lakh D. ₹ 10 Lakh