Frivolous or vexatious insolvency proceedings face penalty under Part III misuse provisions. Penalty may be imposed where any person initiates a frivolous or vexatious proceeding before the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code. The Adjudicating Authority may levy a penalty on such person, with a minimum of one lakh rupees and a maximum of two crore rupees, to discourage misuse of the Part III insolvency process.