IBC 74Chapter II · Chapter VII Offences and Penalties
Section 74 · Punishment for contravention of moratorium or the resolution plan
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(1) Where the
corporate debtor or any of its officer violates the provisions of section 14, any such officer who
knowingly or wilfully committed or authorised or permitted such contravention shall be punishable with
imprisonment for a term which shall not be less than three years, but may extend to five years or with fine
which shall not be less than one lakh rupees, but may extend to three lakh rupees, or with both.
(2) Where any creditor violates the provisions of section 14, any person who knowingly and wilfully authorised or permitted such contravention by a creditor 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.
(3) Where the corporate debtor, any of its officers or creditors or any person on whom the approved resolution plan is binding under section 31, knowingly and wilfully contravenes any of the terms of such resolution plan or abets such contravention, such corporate debtor, officer, creditor or person shall be punishable with imprisonment of not 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.
(2) Where any creditor violates the provisions of section 14, any person who knowingly and wilfully authorised or permitted such contravention by a creditor 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.
(3) Where the corporate debtor, any of its officers or creditors or any person on whom the approved resolution plan is binding under section 31, knowingly and wilfully contravenes any of the terms of such resolution plan or abets such contravention, such corporate debtor, officer, creditor or person shall be punishable with imprisonment of not 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.
The offence at a glance
- Maximum punishment
- 5 years
- Fine
- ₹1,00,00,000
- Cognizable
- Cognizable
- Bailable
- Non-bailable
- Compoundable
- Not compoundable
- Triable by
- Special court
- Cognizable — Police may arrest without a warrant
- Non-bailable — Bail is at the court's discretion
Sub-sections of this section carry different penalties; the maximum is shown.
Derived from the First Schedule Part II rule — not listed section by section
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