65. (1) If, any person initiates the insolvency resolution process or
liquidation proceedings fraudulently or with malicious intent for any
purpose other than for the resolution of insolvency, or liquidation, as the
case may be, the Adjudicating Authority may impose upon such person a
penalty which shall not be less than one lakh rupees, but may extend to one
crore rupees.
(2) If, any person initiates voluntary liquidation proceedings with the
intent to defraud any person, the Adjudicating Authority may impose upon
such person a penalty which shall not be less than one lakh rupees but may
extend to one crore rupees.