1[Section 77A : Punishment for offences related to pre-packaged insolvency resolution process
(1) Where—
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(a) a corporate debtor provides any information in the application under section 54C which is false in material particulars, knowing it to be false oromits any material fact, knowing it to be material; or
(b) a corporate debtor provides any information in the list of claims or the preliminary information memorandum submitted under sub-section (1) of section 54G which is false in material particulars, knowing it to be false or omits any material fact, knowing it to be material; or
(c) any person who knowingly and wilfully authorised or permitted the furnishing of suchinformation under sub-clauses (a) and (b),
such corporate debtor or person, as the case may be, shall be punishable with imprisonment for a term which shall not be less than three years, but which may extend to five years or with fine which shall not be less than one lakh rupees, but which may extend to one crore rupees, or with both.
(2) If a director or partner of the corporate debtor, as the case may be, deliberately contravenes the provisions of Chapter III-A, such person shall be punishable with imprisonment for not less than three years, but which may extend to five years, or with fine which shall not be less than one lakh rupees, but which may extend to one crore rupees, or with both.
Explanation. ––For the purposes of this section, and sections 75, 76 and 77, an application shall be deemed to be false in material particulars in case the facts mentioned or omitted in the application, if true, or not omitted from the application as the case may be, would have been sufficient to determine the existence of a default under this Code.]
Foot note:
1Inserted by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 with effect from 04th April, 2021and enacted by Insolvency and Bankruptcy Code (Amendment) Act, 2021 with effect from 4th day of April, 2021.
The offences (in brief) and their respective punishments under Chapter VII of the Code are tabulated below:
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Offense
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Imprisonment
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Fine
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|
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68
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Concealment of property of the CD
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Not less than three years and may extend up to five years
|
Not less than one lakh rupees but may extend to one crore rupees
|
|
69
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Transactions defrauding creditors
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Not less than one year and may extend up to five years
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Not less than one lakh rupees but may extend to one crore rupees
|
|
70
|
Misconduct in the course of CIRP
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Not less than three years and may extend up to five years
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Not less than one lakh rupees but may extend to one crore rupees
|
|
71
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Falsification of books of the Corporate Debtor
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Not less than three years and may extend up to five years
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Not less than one lakh rupees but may extend to one crore rupees
|
|
72
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Willful and material omissions from statements relating to affairs of the CD
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Not less than three years and may extend up to five years
|
Not less than one lakh rupees but may extend to one crore rupees
|
|
73
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False representation to creditors
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Not less than three years and may extend up to five years
|
Not less than one lakh rupees but may extend to one crore rupees
|
|
74
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Contravention of moratorium or the resolution plan
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Not less than one year or three years as the case may be, under sub-section (1), (2) or (3) and may extend up to five years
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Not less than one lakh rupees but may extend to three lakh rupees or one crore rupees, as the case may be, under sub-section (1), (2) or (3)
|
|
75
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False information furnished in application
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No imprisonment
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Not less than one lakh rupees but may extend to one crore rupees
|
|
76
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Non-disclosure of dispute or payment of debt by operational creditor
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Not less than one year and may extend up to five years
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Not less than one lakh rupees but may extend to one crore rupees
|
|
77
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Providing false information in application made by the CD
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Not less than three years and may extend up to five years
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Not less than one lakh rupees but may extend to one crore rupees
|
|
77A
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Punishment for offences related to pre-packaged insolvency resolution process
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A term which shall not be less than three years, but which may extend to five years
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not be less than one lakh rupees, but which may extend to one crore rupees
|