Section 67A
Fraudulent management of corporate debtor during pre-packaged insolvency resolution process
The Insolvency and Bankruptcy Code, 2016.
About this Act
An Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto.
1[67A. Fraudulent management of corporate debtor during pre-packaged insolvency resolution
process.--On and after the pre-packaged insolvency commencement date, where an officer of the
corporate debtor manages its affairs with the intent to defraud creditors of the corporate debtor or for any
fraudulent purpose, the Adjudicating Authority may, on an application by the resolution professional,
pass an order imposing upon any such officer, a penalty which shall not be less than one lakh rupees, but
may extend to one crore rupees.]
Notes
1. Ins. by Act 26 of 2021, s. 11 (w.e.f. 4-4-2021).