Section 65:
Fraudulent or malicious initiation of proceedings.
(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.
1[(3) If any person initiates the pre-packaged insolvency resolution process--
(a) fraudulently or with malicious intent for any purpose other than for the resolution of
insolvency; or
(b) 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.]
Notes:
1. Ins. by Act 26 of 2021, s. 10 (w.e.f. 4-4-2021).