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“(1) If a debtor or creditor provides information which is false in any material particulars to the resolution professional, he
shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to five lakh
rupees, or with both.
(2) If a creditor promises to vote in favour of the repayment plan dishonestly by accepting any money, property or security
from the debtor, he shall be punishable with imprisonment for a term which may extend to two years, or with fine which may
extend to three times the amount or its equivalent of such money, property or security accepted by such creditor, as the case
may be, or with both:
Provided that where such amount is not quantifiable, the total amount of fine shall not exceed five lakh rupees.”
VL Note : –
“If an insolvency professional deliberately contravenes the provisions of this Part, he shall be punishable with imprisonment
for a term which may extend to six months, or with fine, which shall not be less than one lakh rupees, but may extend to five
lakhs rupees, or with both.”
VL Note : –
“If the bankrupt –
(a) knowingly makes a false representation or wilfully omits or conceals any material information while making an application
for bankruptcy under section 122 or while providing any information during the bankruptcy process, he shall be punishable
with imprisonment which may extend to six months, or with fine which may extend to five lakh rupees, or with both;
Explanation. – For the purposes of clause (a), a false representation or omission includes non-disclosure of the details of
disposal of any property, which but for the disposal, would be comprised in the estate of the bankrupt, other than
dispositions made in the ordinary course of business carried on by the bankrupt;
(b) fraudulently has failed to provide or deliberately withheld the production of, destroyed, falsified or altered, his books of
accounts, financial information and other records under his custody or control, he shall be punishable with imprisonment
which may extend to one year, or with fine, which may extend to five lakh rupees, or with both;
(c) has contravened the restrictions under section 140 or the provisions of section 141, he shall be punishable with
imprisonment for a term which may extend to six months, or with fine, which may extend to five lakh rupees, or with both;
(d) has failed to deliver the possession of any property comprised in the estate of the bankrupt under his possession or
control, which he is required to deliver under section 156, he shall be punishable with imprisonment for a term which may
extend to six months, or with fine, which may extend to five lakh rupees, or with both;
(e) has failed to account, without any reasonable cause or satisfactory explanation, for any loss incurred of any substantial
part of his property comprised in the estate of the bankrupt from the date which is twelve months before the filing of the
bankruptcy application, he shall be punishable with imprisonment for a term which may extend to two years, or with fine,
which may extend to three times of the value of the loss, or with both:
Provided that that where such loss is not quantifiable, the total amount of fine imposed shall not exceed five lakh rupees;
(f) has absconded or attempts to absconds after the bankruptcy commencement date, he shall be punishable with
imprisonment for a term which may extend to one year, or with fine, which may extend to five lakh rupees, or with both;
Explanation. – For the purposes of this clause, a bankrupt shall be deemed to have absconded if he leaves, or attempts to
leave the country without delivering the possession any property which he is required to deliver to the bankruptcy trustee
under section 156″
VL Note : –
“(1) If a bankruptcy trustee, –
(a) has fraudulently misapplied, retained or accounted for any money or property comprised in the estate of the bankrupt; or
(b)has wilfully acted in a manner that the estate of the bankrupt has suffered any loss in consequence of breach of any duty
of the bankruptcy trustee in carrying out his functions under section 149, he shall be punishable with imprisonment for a
term which may extend to three years, or with fine, which shall not be less than three times the amount of the loss caused,
or likely to have been caused, to persons concerned on account of such contravention, or with both:
Provided that where such loss or unlawful gain is not quantifiable, the total amount of fine imposed shall not exceed five lakh
rupees:
Provided further that the bankruptcy trustee shall not be liable under this section if he seizes or disposes of any property
which is not comprised in the estate of the bankrupt and at that time had reasonable grounds to believe that he is entitled to
seize or dispose that property.”
VL Note : –