IBC Summary of Importants Penalties on Insolvency & Bankruptcy Code

Summary of Importants Penalties on Insolvency & Bankruptcy Code

Summary of Importants Penalties on Insolvency & Bankruptcy Code

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

   
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 

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

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

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