False information in pre-packaged insolvency filings attracts imprisonment and fines for corporate debtors and responsible persons. Offences prohibit furnishing materially false information or omitting material facts in the pre-packaged insolvency application under section 54C, the list of claims, or the preliminary information memorandum under section 54G, and include persons who knowingly authorised or permitted such conduct. The corporate debtor or such person faces imprisonment of three to five years, a fine within prescribed limits, or both. Directors or partners who deliberately contravene Chapter III-A incur the same penal range. An application is deemed false in material particulars if the facts, had they been true or not omitted, would have been sufficient to determine the existence of a default.
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 information in pre-packaged insolvency filings attracts imprisonment and fines for corporate debtors and responsible persons.
Offences prohibit furnishing materially false information or omitting material facts in the pre-packaged insolvency application under section 54C, the list of claims, or the preliminary information memorandum under section 54G, and include persons who knowingly authorised or permitted such conduct. The corporate debtor or such person faces imprisonment of three to five years, a fine within prescribed limits, or both. Directors or partners who deliberately contravene Chapter III-A incur the same penal range. An application is deemed false in material particulars if the facts, had they been true or not omitted, would have been sufficient to determine the existence of a default.
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