Section 72: Offense and punishment

1) A person shall be deemed to have committed an offence under this Act if he or she commits or causes the commission of any of the following acts:

(a) Where a person holding the office director of a company does not submit to the Court a report on the financial condition and transaction of the company in the prescribed format under Section 16,

(b) Where any person acts as an insolvency practitioner without obtaining a license from the OfOfficeursuant to this Act,

(c) Where the director of a company deliberately conceals the fact that the company has become insolvent or is going to become insolvent,

(d) Where an insolvency practitioner fails to discharge any such function in good faith as required to be discharged by them under this Act or

(e) Where any director employee or, shareholder or other person of a company commits any act of fraud or forgery against, or cheats or misleads, the company or its creditors.

2) The Court may punish any director who commits the offence referred to in Clause (a) of sub-section (1) with a fine not exceeding fifty thousand rupees.

3) The Court may punish any person who commits the offence referred to in Clause (b) of sub-section (1) with a fine from ten thousand rupees to fifty thousand rupees.

4) Any director who commits the offence referred to in Clause (c) of sub-section (1) shall be punished with a fine not exceeding two hundred thousand rupees, and the director shall pay such fine personally.

5) Where any company, creditor or concerned party suffers any loss as a result of the failure of an insolvency practitioner to discharge such function in good faith as required to be discharged by him or her as mentioned in Clause (d) of sub-section (1), compensation for such loss shall be recovered from such practitioner, and he or she may also be punished with a fine not exceeding five hundred thousand rupees.

6) The Court may punish any director, employee, shareholder or another person who commits the offence referred to in Clause (e) of sub-section (1) with imprisonment for a term from one year to two years and with a fine from one hundred thousand rupees to five hundred thousand rupees, and the amount involved in the offence shall also be recovered from such offender.