Amended and updated notes on section 337 of Companies Act 2013. Detail discussion on provisions and rules related to penalty for frauds by officers.
Chapter XX (Section 270–365) of the Companies Act, 2013 (CA 2013) deals with the provisions related to winding up. Section 337 of CA 2013 provides for penalty for frauds by officers.
Recently, we have discussed in detail section 336 (Offences by officers of companies in liquidation) of CA 2013. Today, we learn the provisions of section 337 of the Companies Act 2013.
The provisions of section 337 are effective from 15th December, 2016. You may refer Notification No. S.O. 3677(E) issued dated 7-12-2016. In this article, you will learn detail of the provisions of section 337 the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XX |
| Chapter Name | Winding Up |
| Section No. | 337 |
| Section Name | Penalty for frauds by officers |
| Monthly Updated Edition | Company Law PDF |
Section 337 of Companies Act 2013: Penalty for frauds by officers
Section 337 shall come into force on 9th September, 2016 to the extent of applicability for section 246 vide Notification No. S.O. 2912(E) issued dated 09.09.2016 and fully applicable from 15th December, 2016 vide Notification No. S.O. 3677(E) dated 07.12.2016.
If any person, being at the time of the commission of the alleged offence an officer of a company which is subsequently ordered to be wound up by the Tribunal under this Act, —
- (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.