Amended and updated notes on section 86 of Companies Act 2013. Detail discussion on provisions and rules related to punishment for contravention.
Chapter VI (Sections 77–87) of the Companies Act, 2013 (CA 2013) deals with the provisions related to registration of charges. Section 86 of CA 2013 provides for punishment for contravention.
Recently, we have discussed in detail section 85 (Company’s register of charges) of CA 2013. Today, we learn the provisions of section 86 of Companies Act 2013 read with the Companies (Registration of Charges) Rules, 2014.
Section 86 of the Companies Act, 2013 has been notified by the Ministry of Corporate Affairs (MCA) vide Notification No. S.O. 2754(E) issued dated 12.09.2013. This notification shall come into force from 12th September, 2013 i.e. the commencement date of section 86 is 12-09-2013.
| 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. | VI |
| Chapter Name | Registration of Charges |
| Section No. | 86 |
| Section Name | Punishment for contravention |
| Monthly Updated Edition | Company Law PDF |
Section 86 of Companies Act 2013: Punishment for contravention
Section 86 shall come into force on 12th September, 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.
(1) If any company contravenes any provision of this Chapter, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to ten lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.
(2) If any person wilfully furnishes any false or incorrect information or knowingly suppresses any material information, required to be registered in accordance with the provisions of section 77, he shall be liable for action under section 447.