valid as on 03/11/2024

Section 337. Penalty for frauds by officers
Effective from 09/09/2016 to the extent of their application for section 246 and for other cases effective from 15-12-2016

If any person, being at the time of the commission of the alleged offence an of a company which is subsequently ordered to be wound up by the or which subsequently passes a resolution for voluntary winding up

(a) has, by false pretences or by means of any other fraud, induced any person to give credit to the company;
(b) with intent to defraud creditors of the company or any other person, has made or caused to be made any gift or transfer of, or charge on, or has caused or connived at the levying of any execution against, the property of the company; or
(c) with intent to defraud creditors of the company, has concealed or removed any part of the property of the company since the date of any unsatisfied judgment or order for payment of money obtained against the company or within two months before that date,

he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees.

2(59) Officer includes any director, manager or key managerial personnel or any person in accordance with whose directions or instructions the Board of Directors or any one or more of the directors is or are accustomed to act
2(90) Tribunal means the National Company Law Tribunal constituted under section 408
Substituted vide The Insolvency and Bankruptcy Code, 2016. To view the amendment,Click Here

Amendments to Companies Act, 2013 vide Eleventh Schedule of the Insolvency and Bankruptcy Code, 2016


Enforcement Notification [S.O 2192 (E)] dated 09/09/2016


Enforcement Notification S.O. 3677(E) dated 07/12/2016


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