Fraudulent management in pre-packaged insolvency can attract civil penalties and enforcement of charges on debtor assets. Adjudicating authority may, to give effect to an order under section 66, create and enforce a charge on debts, obligations, mortgages or interests in assets in favour of a person or specified assignee, and may direct that a creditor's claim rank after other debts under the order of priority. Separately, during a pre-packaged insolvency resolution process, the authority may impose a civil penalty on officers who manage the corporate debtor with intent to defraud creditors or for any fraudulent purpose, on application by the resolution professional.
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.
Fraudulent management in pre-packaged insolvency can attract civil penalties and enforcement of charges on debtor assets.
Adjudicating authority may, to give effect to an order under section 66, create and enforce a charge on debts, obligations, mortgages or interests in assets in favour of a person or specified assignee, and may direct that a creditor's claim rank after other debts under the order of priority. Separately, during a pre-packaged insolvency resolution process, the authority may impose a civil penalty on officers who manage the corporate debtor with intent to defraud creditors or for any fraudulent purpose, on application by the resolution professional.
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