Section 65 of Insolvency and Bankruptcy Code 2016

By | December 1, 2016
(Last Updated On: December 1, 2016)

Section 65 of Insolvency and Bankruptcy Code 2016

[ Note : Section 65  comes into force w.e.f 1st December 2016 vide notification no S.O. 3594(E) dated 30th November 2016 ]

Fraudulent or malicious initiation 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.

Leave a Reply

Your email address will not be published.