False or misleading insolvency information triggers civil compensation and criminal penalties where knowing misrepresentation is authorised. The corporate debtor must submit a preliminary information memorandum and a list of claims, identifying creditors and security interests, in a specified form and within a short statutory period. Material omissions or misleading information in these documents expose promoters, directors, partners or authorised submitters to civil liability for compensation, except where submission occurred without their knowledge or consent, and deliberate falsehoods or authorised misrepresentations attract prescribed criminal penalties.
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.
False or misleading insolvency information triggers civil compensation and criminal penalties where knowing misrepresentation is authorised.
The corporate debtor must submit a preliminary information memorandum and a list of claims, identifying creditors and security interests, in a specified form and within a short statutory period. Material omissions or misleading information in these documents expose promoters, directors, partners or authorised submitters to civil liability for compensation, except where submission occurred without their knowledge or consent, and deliberate falsehoods or authorised misrepresentations attract prescribed criminal penalties.
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