Table of Contents
Summary of Importants Penalties on Insolvency & Bankruptcy Code
| CIRP | Section 68 to 77 - Penalties on Insolvency & Bankruptcy Code | ||
| S.No | Nature of Offence | Punishment | |
| Imprisonment | Fine | ||
| 1 | Concealment of Property | 3-5 | 1-100 |
| 2 | Misconduct during CIRP by CD/officer | 3-5 | 1-100 |
| 3 | Falsification of Books of Accounts | 3-5 | 1-100 |
| 4 | Wilful and Material omissions from Statements | 3-5 | 1-100 |
| 5 | False Representation to Creditors | 3-5 | 1-100 |
| 6 | Contravention of Moratorium or resolution plan | 3-5 | 1-100 |
| 7 | False Information in application made by CD | 3-5 | 1-100 |
| 8 | Transaction defrauding Creditors | 1-5 | 1-100 |
| 9 | Non Disclosure of dispute or payment of debt by Operational Creditor | 1-5 | 1-100 |
| 10 | Contravention of Moratorium or resolution plan by Creditor | 1-5 | 1-100 |
| 11 | IRP Contravence provision of this law | 6 month | 1-5 lacs |
| 12 | False Information furnished in Application | 0 | 1-100 |
Individual and Partnership- Penalties on Insolvency & Bankruptcy Code |
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| S.No | Nature of Offence | Punishment | |
| Imprisonment | Fine | ||
| 1 | Contravention of provisions by IP | 6 months | 1-5 |
| 2 | False information by Bankrupt | 6 months | 5 |
| 3 | False information by Debtors/Creditors | 1 | 5 |
| 4 | For Certain Actions | 3 | 3 times of loss |
| 5 | Creditor Promises to vote dishonestly | 2 | 3 times of loss |
Details about Penalites & Punishment under IBC |
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| Offences and Penalties under part II of the code | |||||||
| S.No | Process | Section No. | Process and who is liable | Provision | When | Fine | Imprisonment |
| 1 | IRPC | 68 | Punishment for concealment of property (Corporate Debtor) |
any officer of CD has (if could not prove not-guilty): - Concealed any debt due to/from CD or wilfully concealed or fraudulently removed any part of / property of CD of value >=Rs. 10,000 - wilfully concealed, destroyed, mutilated, falsified or made false entry w.r.t any book / paper of property/P&M affairs of CD - fraudulently parted/altered/omitted any doc of property / affairs of CD - wilfully concealed knowledge of others doing above two - wilfully created any security int./ transferred / disposed any prop obtained on credit & not paid for - taken in pawn or pledge or received property knowing it to be so secured, transferred / disposed (only after i.c.d) |
Within in 12 months immediately preceding the Insolvency commencement date or any time after insolvency commencement dt |
1 lakh to 1 crore |
3 - 5 years |
| 2 | IRPC | 70 | Punishment for misconduct in course of CIRP (Corporate Debtor) |
any officer of CD has (if could not prove not-guilty): - does not disclose details of prop/txns/info to RP - does not deliver control or custody of part/property to RP - does not deliver books/papers of CD in his control to RP - fails to inform RP about the information in his knowledge about falsely proved debt by any person during CIRP - prevents production of book/paper w.r.t prop/affair of CD - Accounts for any part/prop of CD by fictitious loss/exp. or has attempted during any meeting of Crs. of CD within 12 months of i.c.d |
On or after insolvency commencement date | 1 lakh to 1 crore |
3 - 5 years |
| 3 | IRPC | 71 | Punishment for falsification of books of CD (Any Person) |
any person destroys, mutilates, alters or falsifies any books / papers / securities, or makes or is in the knowledge of making of any false / fraudulent entry in any register, books of account or document of CD with intent to defraud or deceive any person |
On or after insolvency commencement date | 1 lakh to 1 crore |
3 - 5 years |
| 4 | IRPC | 72 | Punishment for wilful & material omissions from statements relating to affairs of CD (CD) |
any officer of CD makes any material & wilful omission in any statement relating to affairs of CD |
No time limit | 1 lakh to 1 crore |
3 - 5 years |
| 5 | IRPC | 73 | Punishment for false representations to Crs. (corpotate debtor) |
any officer of CD- (a) makes a false representation or commits any fraud for the purpose of obtaining the consent of the creditors of CD or any of them to an agreement with reference to the affairs of CD, during the CIRP, or the liquidation process (b) has made any false representation, or committed any fraud, for that purpose |
(a) On or after insolvency commencement dt (b) Prior to insolvency commencement date |
1 lakh to 1 crore |
3 - 5 years |
| 6 | IRPC | 77 | Punishment for providing false information in application made by CD (CD or any other person) |
- CD knowingly furnishes false info or omits material fact in application u/s 10 - any person wilfully authorise/permit above offence |
No time limit | 1 lakh to 1 crore |
3 - 5 years |
| 7 | IRPC | 74 | Punishment for contravention of moratorium or the resolution plan (CD) |
CD or any officer of CD directly or indirectly violates sec 14 (i.e., moratorium), then officer held responsible |
During Moratorium | 1 lakh to 3 lakhs |
3 - 5 years |
| 7a | IRPC | 74 | Punishment for contravention of moratorium or the resolution plan (CD) |
any creditor violates sec 14 (i.e., moratorium), then person allowing held responsible |
During Moratorium | 1 lakh to 1 crore |
1 - 5 years |
| 7b | IRPC | 74 | Punishment for contravention of moratorium or the resolution plan (Any person/CD) |
CD or any officer of CD or any creditor or any person on whom approved Resolution plan is binding u/s 31, contravenes any terms of Resolution plan |
During Moratorium | 1 lakh to 1 crore |
1 - 5 years |
| 8 | IRPC | 69 | Punishment for transactions defrauding Creditors (corporate debtor) |
any officer of CD has (if could not prove not-guilty): - made/caused any gift/transfer or charge on or caused for execution of decree/order against property of CD - concealed or removed part/property of CD within 2 months before date of unsatisfied judgement/decree/ order for payment of money obtained against CD [if first pt. beyond 5 years of i.c.d then not offence] |
On or after insolvency commencement date | 1 lakh to 1 crore |
1 - 5 years |
| 9 | IRPC | 76 | Punishement for nondisclosure of dispute or repayment of debt by OC (OC or any other person) |
- OC wilfully conceals the fact in appl u/s 9 that CD had notified him of dispute w.r.t upaid operational debt or full payment thereof - any person wilfully authorise/permit above concealment |
No time limit | 1 lakh to 1 crore |
1 - 5 years |
| 10 | IRPC | 75 | Punishment for false information furnished in application |
Any person knowingly furnishes false info or omits material fact in application u/s 7 |
No time limit | 1 lakh to 1 crore |
Nil |
| 11 | IRPC | 78 | Application under IBC | central government has specify for default of IR and Bankruptcy for individuals and PF - Lower/Higher | No time limit | 1,000 and 1,00,000 | Nil |
| 2a | IRPC | 70 | Punishment for misconduct in course of CIRP (IP) |
If an Insolvency Proff (IP) deliberately contravenes above (mentioned in pt. 3) |
On or after insolvency commencement date | 1 lakh to 5 lakhs |
6 months |
Details about Offences and Penalties under part III of the code |
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| S.No | Process | Section No. | Process | Who is liable? | Fine | Imprisonment | |
| 12 | IRPC | 184(1) | Punishment for false info, etc. by crs in IRP | (Debtor or creditor) | 5 lakhs | 1 Year | |
| 12a | IRPC | 184(2) | Punishment for false info, etc. by crs in IRP | (creditor) | Three times the amont or its equivalent of such money, property or secuity; upto 5lakh | 2 years | |
| 13 | IRPC | Sec 185 | Punishment for contravention of provisions | Insolvency Professional | 1 lakh to 5 lakhs |
6 months | |
| 14 | IRPC | 186(a) | Punishment for false information, etc. by bankrupt | Bankrupt | 5 lakhs | 6 months | |
| 14(a) | IRPC | 186(b) | Punishment for false information, etc. by bankrupt | Bankrupt | 5 lakhs | 1 Year | |
| 14(b) | IRPC | 186( c) | Punishment for false information, etc. by bankrupt | Bankrupt | 5 lakhs | 6 months | |
| 14(c ) | IRPC | 186(d) | Punishment for false information, etc. by bankrupt | Bankrupt | 5 lakhs | 6 months | |
| 14(d) | IRPC | 186(e) | Punishment for false information, etc. by bankrupt | Bankrupt | Three times the value of the loss | 2 years | |
| 14(e) | IRPC | 186(f) | Punishment for false information, etc. by bankrupt | Bankrupt | 5 lakhs | 1 Year | |
| 15 | IRPC | 187 | Punishment for certain actions. | Bankruptcy Trustee | Three times the amont of the loss caused, or likely to have been caused; upto 5lakh | 3 years | |
