Section 77A 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.
Section 77A was added to carry the criminal consequences of the pre-packaged insolvency resolution process in Chapter III-A. It punishes a corporate debtor, and any person who knowingly and wilfully authorised it, for false information in three documents of the process, and it separately punishes a director or partner who deliberately contravenes the Chapter. This article reads the section as printed in the IBBI consolidated text of the Code amended up to 12 August 2021.
Section 77A(1) punishes false information, or the omission of a material fact, in the application under section 54C, or in the list of claims or the preliminary information memorandum submitted under section 54G(1), and punishes any person who knowingly and wilfully authorised or permitted it. Section 77A(2) punishes a director or partner who deliberately contravenes the provisions of Chapter III-A. Each carries imprisonment of not less than three years and up to five years, or a fine of not less than one lakh rupees and up to one crore rupees, or both.
Where section 77A came from
The consolidated text prints section 77A in square brackets and records in a footnote that it was inserted by Act No. 26 of 2021, section 13, with effect from 04-04-2021. The same Act brought in Chapter III-A, the pre-packaged insolvency resolution process (sections 54A to 54P). Section 77A is the offence section for that Chapter, and a promoter who is unsure about a statement in a filing can ask a legal dispute resolution team before signing. If you are weighing whether to use that route, see our overview of the pre-packaged insolvency resolution process and our note on MSME special provisions and the pre-pack.
Section 77A(1): three documents, one standard
Sub-section (1) lists three kinds of conduct.
| Clause | Who | Document | Conduct |
|---|---|---|---|
| (a) | A corporate debtor | The application under section 54C | Provides information that is false in material particulars, knowing it to be false, or omits any material fact, knowing it to be material |
| (b) | A corporate debtor | The list of claims or the preliminary information memorandum submitted under sub-section (1) of section 54G | The same conduct as in clause (a) |
| (c) | Any person | The information furnished under clauses (a) and (b) | Knowingly and wilfully authorised or permitted the furnishing of that information |
"Such corporate debtor or person, as the case may be, shall be punishable with imprisonment for a term which shall not be less than three years, but which may extend to five years or with fine which shall not be less than one lakh rupees, but which may extend to one crore rupees, or with both."
Some observations follow from the words.
The standard is knowledge. In clauses (a) and (b) the information must be false "knowing it to be false", or a material fact must be omitted "knowing it to be material". An honest error is outside the clause.
Clause (c) widens the net. The person need not be a director. Anyone who knowingly and wilfully authorised or permitted the furnishing is within it. A chartered accountant who certifies a claims list he knows to be false, or a promoter who instructs the management to leave out a creditor, would be within the text if the other conditions are met.
The documents are named. The section names the application under section 54C, the list of claims and the preliminary information memorandum under section 54G(1). It does not extend by its words to other statements made in the course of Chapter III-A. For those, sub-section (2) may be relevant.
Printing slip: clause (c) refers to information "under sub-clauses (a) and (b)", although (a) and (b) are clauses. We quote it as printed.
Example. Cedar Valley Auto Components Private Limited prepares to file an application under section 54C. Its finance director, Kavita Nair, knows that a supplier's dues of a large amount are not in the list of claims that goes into the preliminary information memorandum. The omission is of a material fact, and she knows it to be material. Clause (b) is in view for the corporate debtor, and clause (c) for Kavita if she knowingly and wilfully authorised or permitted the omission. Where such a risk is apparent, the document should be corrected before it is filed.
Section 77A(2): deliberate contravention of Chapter III-A
Sub-section (2) is different in kind. It says: "If a director or partner of the corporate debtor, as the case may be, deliberately contravenes the provisions of Chapter III-A, such person shall be punishable with imprisonment for not less than three years, but which may extend to five years, or with fine which shall not be less than one lakh rupees, but which may extend to one crore rupees, or with both."
- Who: a director or, where the corporate debtor is a partnership-type entity, a partner. The phrase "as the case may be" ties the description to the form of the entity.
- What: a contravention of "the provisions of Chapter III-A", which means sections 54A to 54P.
- Mental element: "deliberately". A contravention that is not deliberate is outside the sub-section.
- Punishment: the same range as in sub-section (1).
The sub-section does not say what the Chapter requires of a director or partner. For that, the Chapter's own provisions must be read; this article does not summarise them.
The Explanation: when an application is "false in material particulars"
Section 77A closes with an Explanation: "For the purposes of this section and sections 75, 76 and 77, an application shall be deemed to be false in material particulars in case the facts mentioned or omitted in the application, if true, or not omitted from the application as the case may be, would have been sufficient to determine the existence of a default under this Code."
This Explanation is the one that previously stood as an Explanation to section 77 (a footnote to section 77 records its omission by Act No. 26 of 2021). It applies to this section, to sections 75 and 77 (see our article on sections 75 and 77), and to section 76. Its test is about "default": facts that, if true or if stated, would have been sufficient to determine the existence of a default under the Code. The Explanation is framed around "an application", so its direct fit with the list of claims and the preliminary information memorandum in clause (b) is a point on which the section's own words do not say more.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend section 77A. It does amend sections 54A, 54C, 54F, 54L and 54N of Chapter III-A (sections 34 to 38 of the Act), and section 54C is one of the provisions that clause (a) of section 77A refers to; this article does not explain those changes. The Explanation to section 77A still names section 76 as printed, and section 50 of the Act omits section 76; the texts consulted do not say how the reference to section 76 is to be read once that omission takes effect, and the reader should look at the position when the omission is notified.
The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether these changes have been notified.
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 a pre-packaged resolution filing?
A pre-pack application rests on accurate information, and section 77A makes the accuracy a matter of criminal liability for the company, for those who authorise it and for directors and partners. If you are preparing or reviewing such a filing, our legal dispute resolution team can help you test each statement against the documents before it goes in.
Key takeaways
- Section 77A has two limbs: false information in three named documents, and deliberate contravention of Chapter III-A.
- Punishment: three to five years' imprisonment, or one lakh to one crore rupees fine, or both.
- Knowledge is the test in sub-section (1); deliberateness is the test in sub-section (2).
- Anyone who knowingly and wilfully authorised or permitted the false information is within clause (c).
- The Amendment Act, 2026 does not amend section 77A.
Read next
- Sections 75 and 77: false information in section 7 and section 10 applications
- Sections 71 to 73: falsification of books and false representations
- The pre-packaged insolvency resolution process for MSMEs
- IBC for MSMEs: special provisions and the pre-pack
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.