(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.
Insolvency and Bankruptcy Code 2016
Section 61 Appeals and Appellate Authority
Section 62 Appeal to Supreme Court
Section 63 Civil court not to have jurisdiction
Section 64 Expeditious disposal of applications
Section 65 Fraudulent or malicious initiation of proceedings
Section 66 Fraudulent trading or wrongful trading
Section 67 Proceedings under section 66
CHAPTER VII OFFENCES AND PENALTIES
Section 68 Punishment for concealment of property
Section 69 Punishment for transactions defrauding creditors
Section 70 Punishment for misconduct in course of corporate insolvency resolution process