Offences and Penalties under Part III of IBC

A man applying for bankruptcy forgets to mention the plot he gifted to his cousin last year. Another hides his account books. A third slips out of the country the week after the order. Civil consequences alone would not stop any of them, so the Code adds criminal ones. Chapter VII of Part III, sections 184 to 187, lists who can be punished, for what, and how heavily. This topic is mostly a precise memory exercise, and marks go to the student who can pair each person with the right act and the right penalty.

In two minutes

Sections 184 to 187 punish false information and dishonest vote-buying by debtors and creditors (s.184), deliberate contraventions by insolvency professionals (s.185), a list of misconduct by the bankrupt (s.186) and fraud or wilful breach of duty by the bankruptcy trustee (s.187); s.183A separately penalises frivolous or vexatious proceedings.

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