184. Punishment for false information, etc., by creditor in insolvency resolution process.—(1) If
a debtor or creditor provides information which is false in any material particulars to the resolution
professional, he shall be punishable with imprisonment for a term which may extend to one year, or with
fine which may extend to five lakh rupees, or with both.
(2) If a creditor promises to vote in favour of the repayment plan dishonestly by accepting any
money, property or security from the debtor, he shall be punishable with imprisonment for a term which
may extend to two years, or with fine which may extend to three times the amount or its equivalent of
such money, property or security accepted by such creditor, as the case may be, or with both:
Provided that where such amount is not quantifiable, the total amount of fine shall not exceed five
lakh rupees.
185. Punishment for contravention of provisions.—If an insolvency professional deliberately
contravenes the provisions of this Part, he shall be punishable with imprisonment for a term which may
extend to six months, or with fine, which shall not be less than one lakh rupees, but may extend to five
lakhs rupees, or with both.
186. Punishment for false information, concealment, etc., by bankrupt.—If the bankrupt—
(a) knowingly makes a false representation or wilfully omits or conceals any material information
while making an application for bankruptcy under section 122 or while providing any information
during the bankruptcy process, he shall be punishable with imprisonment which may extend to six
months, or with fine which may extend to five lakh rupees, or with both;
Explanation.—For the purposes of clause (a), a false representation or omission includes nondisclosure of the details of disposal of any property, which but for the disposal, would be comprised
in the estate of the bankrupt, other than dispositions made in the ordinary course of business carried
on by the bankrupt;
(b) fraudulently has failed to provide or deliberately withheld the production of, destroyed,
falsified or altered, his books of account, financial information and other records under his custody or
control, he shall be punishable with imprisonment which may extend to one year, or with fine, which
may extend to five lakh rupees, or with both;
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(c) has contravened the restrictions under section 140 or the provisions of section 141, he shall be
punishable with imprisonment for a term which may extend to six months, or with fine, which may
extend to five lakh rupees, or with both;
(d) has failed to deliver the possession of any property comprised in the estate of the bankrupt
under his possession or control, which he is required to deliver under section 156, he shall be
punishable with imprisonment for a term which may extend to six months, or with fine, which may
extend to five lakh rupees, or with both;
(e) has failed to account, without any reasonable cause or satisfactory explanation, for any loss
incurred of any substantial part of his property comprised in the estate of the bankrupt from the date
which is twelve months before the filing of the bankruptcy application, he shall be punishable with
imprisonment for a term which may extend to two years, or with fine, which may extend to three
times of the value of the loss, or with both:
Provided that that where such loss is not quantifiable, the total amount of fine imposed shall not
exceed five lakh rupees;
(f) has absconded or attempts to absconds after the bankruptcy commencement date, he shall be
punishable with imprisonment for a term which may extend to one year, or with fine, which may
extend to five lakh rupees, or with both;
Explanation.—For the purposes of this clause, a bankrupt shall be deemed to have absconded if
he leaves, or attempts to leave the country without delivering the possession of any property which he
is required to deliver to the bankruptcy trustee under section 156.
187. Punishment for certain actions.—If a bankruptcy trustee,—
(a) has fraudulently misapplied, retained or accounted for any money or property comprised in
the estate of the bankrupt; or
(b) has wilfully acted in a manner that the estate of the bankrupt has suffered any loss in
consequence of breach of any duty of the bankruptcy trustee in carrying out his functions under
section 149,
he shall be punishable with imprisonment for a term which may extend to three years, or with fine, which
shall not be less than three times the amount of the loss caused, or likely to have been caused, to persons
concerned on account of such contravention, or with both:
Provided that where such loss or unlawful gain is not quantifiable, the total amount of fine imposed
shall not exceed five lakh rupees:
Provided further that the bankruptcy trustee shall not be liable under this section if he seizes or
disposes of any property which is not comprised in the estate of the bankrupt and at that time had
reasonable grounds to believe that he is entitled to seize or dispose that property.