1. Avoidance of historical transaction, which can be set aside by NCLT
Borrowers are personally liable to contribute where they have carried out any of the following transactions:
Sec
Details
Time limit
consequences
43-44
Preferential transaction :
given a preference, with the effect of putting that person in a beneficial position
“related party – in the last two years
Unrelated party – in the last one year
If regd with I/U within 30 days – Exempt
Good faith Apply
NCLT can pass an order to make the borrower of the person given preference to restore, repay or account for any profit from such a transaction.
Can reach out to second and third layer
45-48
Undervalue transaction:
And did not take place in the ordinary course of business. And what is not an arms length transaction
Related party – in the last two years
NCLT can pass an order to make the borrower or the person benefited from such a transaction to restore, repay or account for any profit from such transaction
Can reach out only to immediate party
Application by Creditor also. 49
Transaction defrauding creditors:
If any transaction is deliberately entered by the borrower to defraud a creditor
No time limit
Good faith apply
NCLT can pass an order to make the borrower or the person benefitted from such a transaction to restore, repay or account for any profit from such transaction
50-51
Extortionate credit transaction:
party to an extortionate credit transaction
In the last two years
NCLT can pass an order to restore the position, set aside the whole transaction, modify the term etc.
Application Only by liquidator or RP
Agrawal Subodh & Co

2. Offences and Penalties Contd….
Sec 65
Fraudulent initiation of proceedings
1 Lacs-1 crores
Sec 66-67
Fraudulent Trading
Appl by RP to AA
Against Directors & partners
To make contribution to assets as it may deem fit
Sec 68
Concealment of property
For 10,000 or more
Officer
1 lac – 1 crore
3 yr to 5 yr
Sec 69
Defrauding creditors
From Within 2 months before unsatisfied judgement. Upto 5 years
Officer/ debtor
1 lacs- 1 crore
1 yr – 5 yr
Sec 70
Misconduct in CIRP
Prev 12 month Do
1 lac – 1 Cr
3 yr- 5 yr
IP max upto 6 months and
1 lac – 5 lac
Sec 71
Falsification of book of debtor
1 lac- 1 cr
3 yr-5 yr
Sec 72
Wilful and material omissions
Sec 73
False Representation to creditors
Sec 74
Contravention of Moratorium and Resolution plan
Officer/debtor
Creditor
All
Moratorium: 3 yr to 5 yr and 1 lac to 3 lac
1 lac – 1 crore and 1 yr to 5 yr
Resolution Plan
1 yr to 5 yr and 1 lac to 1 cr
Sec 75
False information furnished by Fin Creditor
creditor
1 lac to 1 crore
Sec 76
Non disclosure of dispute or repayment by Op Creditor
1 lac to 1 crore and 1 yr to 5 yr
Sec 77
False information in app by Corp debtor
debtor
3 yr to 5 yr and 1 lac to 1 crore
Agrawal Subodh & Co

3. 184 Providing false information by creditor or debtor to RP
Offence
Punishment
184 Providing false information by creditor or debtor to RP
IMPRSN Max upto 1Y, fine Max upto 5 Lac or both
184 Promising to vote in favour of the repayment plan (debtor pursuading creditor)
IMPRSN max 2Y, Fine 3 times, if not quantifiable then Max 5 Lacs or both
185 Contravention of Prov by IP
IMPRSN max upto 6Ms, Fine 1-5 lacs or both
186 Knowingly makes a false representation or willfully omits or conceals
IMPRSN Max 6M, fine 5 Lac or both
186 Fraudulently has failed to provide or deliberately withheld the production of, destroyed, falsified or altered,
IMPRSN Max 1Y, fine 5 Lac or both
186 Contravened the restrictions under Section 140/ 141
IMPRSN Max 6M, fine 5 Lac or both
186 Failed to deliver the possession
186 Failed to account, without any reasonable cause or satisfactory explanation from the date, which is twelve months before the filing of the bankruptcy application
IMPRSN max 2Y, Fine 3 times and if not quantifiable then Max 5 Lacs or both
186 Absconded or attempts to absconds after the bankruptcy commencement date
IMPRSN max 1Y, Fine 5 Lacs or both
187 Fraudulently misapplied/ retained by RP/BT
IMPRSN max 3Y, Fine 3times and if not quantifiable 5 Lacs or both
Agrawal Subodh & Co