Contravention for non-disclosure of dispute or payment of debt by operational creditor

Where— (a) an operational creditor has 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 payment thereof; or (b) any person who authorised or permitted such concealment under clause (a); or (c) any person who acted on such authorisation or permission, 159 Section 67A was inserted by Act No. 26 of 2021, sec. 11 (w.e.f. 04-04-2021). The amendments enacted by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (Act No. 6 of 2026), sec. 47, have not been brought into force as at 26-05-2026. Accordingly, the operative provision reads: “67A. Fraudulent management of corporate debtor during pre-packaged insolvency resolution process. On and after the pre-packaged insolvency commencement date, where an officer of the corporate debtor manages its affairs with the intent to defraud creditors of the corporate debtor or for any fraudulent purpose, the Adjudicating Authority may, on an application by the resolution professional, pass an order imposing upon any such officer, a penalty which shall not be less than one lakh rupees, but may extend to one crore rupees.” 160 Sections 67B and 67C inserted by Act No. 6 of 2026, sec. 48 (w.e.f. 26-05-2026).

the Adjudicating Authority may, on an application made by the Board or the Central Government or any person authorised by the Central Government in this behalf, as the case may be, impose penalty upon such operational creditor or person, which shall not be less than one lakh rupees but may extend to two crore rupees.