Frivolous insolvency proceedings attract discretionary penalties under Part III to curb misuse of the insolvency process. A new penalty provision deters frivolous or vexatious proceedings under Part III before the Adjudicating Authority. If a person initiates such proceedings, the Adjudicating Authority may impose a penalty within the prescribed statutory range, from a minimum of one lakh rupees up to a maximum of two crore rupees. The provision is a discretionary anti-abuse measure aimed at misuse of the insolvency process.