Liability for misleading pre-pack information requires promoters or authorised persons to compensate affected parties for losses. The corporate debtor must, within two days of the pre-packaged insolvency commencement date, submit an updated list of claims and a preliminary information memorandum in prescribed form. Promoters, directors, partners or persons who authorised the submission are liable to pay compensation for loss caused by omission of material information or misleading information, unless the submission occurred without their knowledge or consent, and an affected person may move a court for compensation subject to the Code's provisions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Liability for misleading pre-pack information requires promoters or authorised persons to compensate affected parties for losses.
The corporate debtor must, within two days of the pre-packaged insolvency commencement date, submit an updated list of claims and a preliminary information memorandum in prescribed form. Promoters, directors, partners or persons who authorised the submission are liable to pay compensation for loss caused by omission of material information or misleading information, unless the submission occurred without their knowledge or consent, and an affected person may move a court for compensation subject to the Code's provisions.
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