Penalties U/S 65 Of IBC Can Be Imposed Against Those Who Fraudulently Initiate Insolvency Process: NCLAT

The NCLAT Principal Bench has ruled that penalties under Section 65 of the IBC can be imposed on those who initiate the insolvency process. This decision reinforces accountability in insolvency proceedings. The ruling aims to prevent frivolous or malicious insolvency petitions. The judgment clarifies the scope of penalties under the IBC. This ruling ensures that those who misuse the insolvency process are held accountable. This decision promotes responsible use of the IBC.