Frivolous or vexatious insolvency proceedings may attract penalty before the Adjudicating Authority under the Code. Penalty is prescribed for initiating frivolous or vexatious proceedings before the Adjudicating Authority under Part II of the Insolvency and Bankruptcy Code, 2016. Where a person has instituted such proceedings, the Adjudicating Authority may impose a penalty, subject to a minimum of one lakh rupees and a maximum of two crore rupees.