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Section 65: Fraudulent or malicious initiation of proceedings.

The Insolvency and Bankruptcy Code, 2016.Central Act · Act 31 of 2016

(1) If, any person initiates the insolvency resolution process or liquidation proceedings fraudulently or with malicious intent for any purpose other than for the resolution of insolvency, or liquidation, as the case may be, the Adjudicating Authority may impose upon such person a penalty which shall not be less than one lakh rupees, but may extend to one crore rupees.

(2) If, any person initiates voluntary liquidation proceedings with the intent to defraud any person, the Adjudicating Authority may impose upon such person a penalty which shall not be less than one lakh rupees but may extend to one crore rupees.

[(3) If any person initiates the pre-packaged insolvency resolution process--

(a) fraudulently or with malicious intent for any purpose other than for the resolution of insolvency; or

(b) with the intent to defraud any person, the Adjudicating Authority may impose upon such person a penalty which shall not be less than one lakh rupees, but may extend to one crore rupees.]

Where this provision sits

ActThe Insolvency and Bankruptcy Code, 2016.
Section65
Marginal noteFraudulent or malicious initiation of proceedings.
JurisdictionCentral
StatusIn force as published by the source
Judgments citing it7

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

  • inserted, Act 26 of 2021. . Ins. by Act 26 of 2021, s. 10 (w.e.f. 4-4-2021).

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