The Insolvency and Bankruptcy Code, 2016
PART II Insolvency Resolution and Liquidation for Corporate Persons
CHAPTER VI Adjudicating Authority for Corporate Persons
Section 65: Fraudulent or malicious intiation of proceedings:
*65. (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.
Notifications & Circulars
*This shall come into force w.e.f. from 01.12.2016.