Sections 184 and 185 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 184 and 185 open the offences chapter of Part III (Chapter VII). Section 184(1) punishes a debtor or creditor who gives the resolution professional information that is false in a material particular. Section 184(2) punishes a creditor who dishonestly promises to vote for the repayment plan in return for money, property or security from the debtor. Section 185 punishes an insolvency professional who deliberately contravenes Part III.
The article follows the IBBI consolidated text of the Code amended up to 12 August 2021 (the "consolidated text").
Giving materially false information to the resolution professional is punishable with imprisonment up to one year, or fine up to five lakh rupees, or both. A creditor who dishonestly promises to vote for the repayment plan after accepting money, property or security from the debtor faces imprisonment up to two years, or a fine up to three times the amount accepted, or both; where the amount cannot be quantified, the fine is capped at five lakh rupees. An insolvency professional who deliberately contravenes Part III faces imprisonment up to six months, or fine of one lakh to five lakh rupees, or both.
Section 184: the heading and the text
The heading in the consolidated text reads "Punishment for false information etc. by creditor in insolvency resolution process". Sub-section (1), however, says "If a debtor or creditor provides information which is false". The heading speaks of "creditor" only while the text covers both a debtor and a creditor.
Printing note. The heading and sub-section (1) do not match. This article follows the text of the sub-section, which names both, and quotes the heading as printed.
Sub-section (1): false information
"If a debtor or creditor provides information which is false in any material particulars to the resolution professional, he shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to five lakh rupees, or with both."
| Element | Words in the text |
|---|---|
| Who | A debtor or creditor |
| Act | Provides information which is false in any material particulars |
| To whom | The resolution professional |
| Penalty | Imprisonment up to one year, or fine up to five lakh rupees, or both |
Three points. The false information must be false "in any material particulars", so a trivial error is outside the words. The recipient is "the resolution professional", the person appointed in Part III under section 79(21) to conduct the fresh start process or insolvency resolution process. And the punishment is alternative or cumulative: imprisonment, fine or both, each only up to a maximum. No minimum is stated. If you are a debtor or creditor preparing information for a resolution professional, a legal dispute resolution consultation with our team can help you check what is accurate before it is filed.
Sub-section (2): dishonest promise to vote
"If a creditor promises to vote in favour of the repayment plan dishonestly by accepting any money, property or security from the debtor, he shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to three times the amount or its equivalent of such money, property or security accepted by such creditor, as the case may be, or with both."
The proviso: "where such amount is not quantifiable, the total amount of fine shall not exceed five lakh rupees".
| Element | Words in the text |
|---|---|
| Who | A creditor |
| Act | Promises to vote in favour of the repayment plan dishonestly by accepting any money, property or security from the debtor |
| Penalty | Imprisonment up to two years, or fine up to three times the amount or its equivalent of what was accepted, or both |
| Proviso | If the amount is not quantifiable, the total fine shall not exceed five lakh rupees |
The "repayment plan" is a plan prepared by the debtor in consultation with the resolution professional under section 105, with a proposal to the committee of creditors for restructuring his debts or affairs (section 79(20)); see the live post on the repayment plan under section 105. The offence is the dishonest promise coupled with acceptance of money, property or security. The text does not say whether the vote has to be actually cast.
Section 185: contravention by an insolvency professional
"If an insolvency professional deliberately contravenes the provisions of this Part, he shall be punishable with imprisonment for a term which may extend to six months, or with fine, which shall not be less than one lakh rupees, but may extend to five lakhs rupees, or with both."
| Element | Words in the text |
|---|---|
| Who | An insolvency professional |
| Act | Deliberately contravenes the provisions of this Part |
| Penalty | Imprisonment up to six months, or fine not less than one lakh rupees but up to five lakhs rupees, or both |
"This Part" is Part III, which runs from section 78 to section 187. The word "deliberately" is part of the test: an innocent breach is outside the words. The fine has a floor of one lakh rupees when it is imposed; the imprisonment limb has only a ceiling. The wording "five lakhs rupees" is printed as such and is quoted as printed.
Section 185 should be read with the code of conduct in section 208, covered in the live post on the statutory code of conduct for every insolvency professional. Section 185 is about contravening Part III; it does not mention section 208. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) amends section 208 by its section 60, and this article does not explain that.
How these offences relate to the rest of Chapter VII
Chapter VII of Part III has four sections: 184, 185, 186 and 187. Section 186 deals with offences by the bankrupt, and section 187 with certain actions of a bankruptcy trustee: see Section 186 and Section 187 of this series. The live post on offences and penalties in Part III also treats the chapter.
The text of sections 184 to 187 does not say which court tries the offences, and this article states nothing on that point.
A worked example
Tanvi Seth applies for insolvency resolution and prepares a repayment plan with the resolution professional. In the schedule of assets she gives the resolution professional, she omits a bank account that holds a substantial sum. That is information false in a material particular, and section 184(1) applies to her as a debtor.
Meanwhile, one of her creditors, Naman Associates, accepts Rs. 8 lakh from Tanvi, promising to vote for the repayment plan. If the promise is dishonest, section 184(2) applies: the fine may extend to three times the Rs. 8 lakh, that is Rs. 24 lakh, with imprisonment of up to two years, or both. Had the amount not been quantifiable, the fine would be capped at five lakh rupees. If the insolvency professional, Arvind Lal, were to contravene a provision of Part III deliberately, section 185 would apply to him. The names and numbers are invented.
Law around these sections
The Amendment Act, 2026 has no clause that amends sections 184 or 185. It comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether any change to a related provision has been notified.
For personal guarantors to corporate debtors, the Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 (the copy consulted is amended up to 02-06-2026) apply alongside Part III; no rules or regulations for other individuals or for partnership firms are in the texts consulted.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help with an allegation or a compliance question?
If you are a debtor, creditor or insolvency professional in a Part III process, the penalties in sections 184 and 185 depend on the exact facts. Our team can help you review them through a legal dispute resolution engagement.
Key takeaways
- Section 184(1): false information in any material particulars to the resolution professional is punishable by up to one year, up to five lakh rupees, or both.
- Section 184(2): a creditor's dishonest promise to vote for the repayment plan after accepting money, property or security carries up to two years, or a fine up to three times the amount, or both; unquantifiable amount, fine up to five lakh rupees.
- Section 185: deliberate contravention of Part III by an insolvency professional carries up to six months, or a fine of one lakh to five lakhs, or both.
- The heading of section 184 says "by creditor" but sub-section (1) names a debtor or creditor.
Read next
- Section 186 of the Insolvency and Bankruptcy Code, 2016: punishment for false information and concealment by a bankrupt
- Section 187 of the Insolvency and Bankruptcy Code, 2016: punishment of a bankruptcy trustee for certain actions
- Sections 181 to 183A: appeals, expeditious disposal and penalty for frivolous proceedings in Part III
- Offences and penalties in Part III
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.