False information in pre-pack insolvency filings triggers mandatory imprisonment and fines under statutory penal provisions. Section 77A criminalises knowingly furnishing or authorising materially false information, or knowingly omitting material facts, in the pre-pack application under section 54C or in the list of claims or preliminary information memorandum under section 54G; it also penalises directors or partners who deliberately contravene Chapter III-A. Penalties include imprisonment for not less than three years and up to five years, or a fine within the statutory range, or both. The section defines 'false in material particulars' by reference to facts that would have been sufficient to determine existence of a default under the Code.
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False information in pre-pack insolvency filings triggers mandatory imprisonment and fines under statutory penal provisions.
Section 77A criminalises knowingly furnishing or authorising materially false information, or knowingly omitting material facts, in the pre-pack application under section 54C or in the list of claims or preliminary information memorandum under section 54G; it also penalises directors or partners who deliberately contravene Chapter III-A. Penalties include imprisonment for not less than three years and up to five years, or a fine within the statutory range, or both. The section defines "false in material particulars" by reference to facts that would have been sufficient to determine existence of a default under the Code.
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