Section 251 Fraudulent application for removal of name – Companies Act 2013

Amended and updated notes on section 251 of Companies Act 2013. Discussion on provisions and rules related to effect of company notified as dissolved.

Amended and updated notes on section 251 of Companies Act 2013. Detail discussion on provisions and rules related to fraudulent application for removal of name.

Chapter XVIII (Section 248252) of the Companies Act, 2013 (CA 2013) deals with the provisions related to removal of names of companies from the register of companies. Section 251 of CA 2013 provides for fraudulent application for removal of name.

Recently, we have discussed in detail section 250 (Effect of company notified as dissolved) of CA 2013. Today, we learn the provisions of section 251 of the Companies Act 2013.

The provisions of section 251 is effective from 26th December, 2016. You may refer Notification No. S.O. 4167(E) issued dated 26-12-2016. In this article, you will learn detail of the provisions of section 251 the Companies Act 2013.

Name of ActThe Companies Act 2013
Enacted byParliament of India
Administered byMinistry of Corporate Affairs (MCA)
Number of Chapters29
Number of Sections484 (470-43+57)
Number of Schedules7
You are reading:
Chapter No.XVIII
Chapter NameRemoval of Names of Companies from the Register of Companies
Section No.251
Section NameFraudulent application for removal of name
Monthly Updated EditionCompany Law PDF

Section 251 of Companies Act 2013: Fraudulent application for removal of name

Section 251 shall come into force on 26th December, 2016 vide Notification No. S.O. 4167(E) dated 26.12.2016.

(1) Where it is found that an application by a company under sub-section (2) of section 248 has been made with the object of evading the liabilities of the company or with the intention to deceive the creditors or to defraud any other persons, the persons in charge of the management of the company shall, notwithstanding that the company has been notified as dissolved—

  • (a) be jointly and severally liable to any person or persons who had incurred loss or damage as a result of the company being notified as dissolved; and
  • (b) be punishable for fraud in the manner as provided in section 447.

(2) Without prejudice to the provisions contained in sub-section (1), the Registrar may also recommend prosecution of the persons responsible for the filing of an application under sub-section (2) of section 248.


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