Recalibrating Cram-Down Mechanics: An Economic and Legal Analysis of the 'Lower-Of' Rule for Dissenting Financial Creditors under the IBC 2026

Author(s)	Mr. Arun dahiya, Mr. Uday chauhan
Country	India
Abstract	This essay evaluates the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (popularly known as “IBC 2.0”) doctrinally and economically while focusing especially on the implementation of the “Lower-Of” payment rule under Section 30(2)(b). This amendment is a significant change to the game theoretic framework of the Committee of Creditors (CoC) to address strategic holdout issues that arise when minority creditors use their liquidation value floors as weapons. The legislature has opted for business continuity over opportunistic asset extraction by restricting the statutory allocation to a dissident financial creditor to the lesser of its liquidation entitlement or its expected share under a Section 53 waterfall.
Keywords	Insolvency and Bankruptcy Code (IBC) 2026, Cram-down Mechanics, Dissenting Financial Creditors, Section 30(2)(b), Section 53 Waterfall, CoC Game Theory, Holdout Arbitrage, Corporate Restructuring.
Field	Sociology > Administration / Law / Management
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-08-01

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@ijfmr.com

International Journal For Multidisciplinary Research