False information in pre-pack insolvency triggers criminal penalties including imprisonment and fines for corporate debtors and responsible officers. The amendment creates offences for knowingly furnishing information that is false in material particulars or knowingly omitting material facts in the section 54C application, and in the list of claims or preliminary information memorandum under section 54G, and for persons who authorise such furnishing; it prescribes custodial and financial penalties. It also penalises directors or partners who deliberately contravene Chapter III-A and explains that an application is false in material particulars if the facts stated or omitted would have been sufficient to determine the existence of a default under the Code.
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Provisions expressly mentioned in the judgment/order text.
False information in pre-pack insolvency triggers criminal penalties including imprisonment and fines for corporate debtors and responsible officers.
The amendment creates offences for knowingly furnishing information that is false in material particulars or knowingly omitting material facts in the section 54C application, and in the list of claims or preliminary information memorandum under section 54G, and for persons who authorise such furnishing; it prescribes custodial and financial penalties. It also penalises directors or partners who deliberately contravene Chapter III-A and explains that an application is false in material particulars if the facts stated or omitted would have been sufficient to determine the existence of a default under the Code.
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