Section 76 of Insolvency and Bankruptcy Code, 2016 (IBC): Punishment for non-disclosure of dispute or payment of debt by operational creditor

The Insolvency and Bankruptcy Code, 2016

Part-II Insolvency Resolution and Liquidation for Corporate Persons

Chapter-VII Offences and Penalties

Section 76: Punishment for non-disclosure of dispute or ¹[payment] of debt by operational creditor.

^*76. Where—

(a) an operational creditor has wilfully or knowingly concealed in an application under section 9 the fact that the corporate debtor had notified him of a dispute in respect of the unpaid operational debt or the full and final ¹[payment] of the unpaid operational debt; or

(b) any person who knowingly and wilfully authorised or permitted such concealment under clause (a), 

such operational creditor or person, as the case may be, shall be punishable with imprisonment for a term which shall not be less than one year but may extend to five years or with fine which shall not be less than one lakh rupees but may extend to one crore rupees, or with both.

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Reference

*Effective from 01.12.2016.

1. Subs. by the IBC (Second Amendment) Act, 2018, w.e.f. 06.06.2018, for the word “repayment”.