Section 184: Punishment for False Information by Creditor in Insolvency Resolution Process
Section 184 of the Insolvency and Bankruptcy Code, 2016 provides criminal consequences where a debtor or creditor gives materially false information to the resolution professional, and where a creditor dishonestly accepts money, property or security in return for promising to vote in favour of a repayment plan.
Text of Section 184
184. Punishment for false information, etc., by creditor in insolvency resolution process.
(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.
Meaning of Section 184
Section 184 protects the integrity of the insolvency resolution process under Part III of the Code. It addresses two different forms of misconduct: supplying materially false information to the resolution professional and corrupting the voting process relating to a repayment plan.
Materially false information
Sub-section (1) applies when a debtor or creditor provides information to the resolution professional that is false in a material particular. The expression indicates that the falsehood must concern a matter of substance rather than an insignificant or immaterial detail. The statutory punishment may extend to one year of imprisonment, a fine up to five lakh rupees, or both.
Dishonest promise to vote for a repayment plan
Sub-section (2) concerns a creditor who dishonestly promises to vote in favour of a repayment plan after accepting money, property or security from the debtor. The provision targets an improper benefit accepted in connection with the creditor's vote.
Punishment under Section 184
| Contravention | Person covered | Maximum imprisonment | Fine |
|---|---|---|---|
| Providing information false in any material particular to the resolution professional | Debtor or creditor | Up to one year | Up to five lakh rupees, or both imprisonment and fine |
| Dishonestly promising to vote in favour of a repayment plan after accepting money, property or security from the debtor | Creditor | Up to two years | Up to three times the amount or equivalent value accepted, or both; where the amount is not quantifiable, the fine cannot exceed five lakh rupees |
Important expressions in the provision
Resolution professional: The Code defines a resolution professional as an insolvency professional appointed to conduct the insolvency resolution process or the pre-packaged insolvency resolution process, as applicable under the Code. In the Part III context, the resolution professional performs the functions assigned by the provisions governing insolvency resolution of individuals and partnership firms.
Repayment plan: Under Section 105, a debtor prepares, in consultation with the resolution professional, a proposal to creditors for restructuring debts or affairs. The repayment plan may provide for matters permitted by the Code, including restructuring and implementation arrangements.
Creditor: Section 3(10) defines a creditor broadly as a person to whom a debt is owed and includes financial creditors, operational creditors, secured creditors, unsecured creditors and decree-holders.
Relationship with the insolvency resolution process
The provision supports reliable disclosure and independent creditor decision-making. A resolution professional depends upon information supplied by participants in carrying out statutory functions, while creditors may be required to consider and vote on a repayment plan. Section 184 attaches penal consequences to the specified conduct that can undermine those processes.
Related IBC provisions
For the surrounding statutory framework, see Section 183 - Expeditious disposal of applications, Section 185 - Punishment for contravention of provisions, Section 186 - Punishment for false information and concealment by bankrupt and Section 187 - Punishment for certain actions.
Official legal resources
For the authoritative Code, amendments, notifications, rules and regulations, refer to the India Code portal and the Insolvency and Bankruptcy Board of India legal framework. The IBBI Acts page includes the Insolvency and Bankruptcy Code (Amendment) Act, 2026.
Last reviewed: 30 September 2026. Verify subsequent amendments and commencement notifications before applying the provision to a specific proceeding.