What is certain attachments, executions, etc., in winding up by Tribunal to be void? What are Offences by officers of companies in liquidation? Section 335 and 336 of Indian Companies Act 2013

Certain attachments, executions, etc., in winding up by Tribunal to be void and Offences by officers of companies in liquidation are defined under Section 335  and 336 of Indian Companies Act 2013. Provisions under these Sections are:

Section 335 of Indian Companies Act 2013 "Certain attachments, executions, etc., in winding up by Tribunal to be void"

(1) Where any company is being wound up by the Tribunal, -
(a) any attachment, distress or execution put in force, without leave of the Tribunal against the estate or effects of the company, after the commencement of the winding up; or

(b) any sale held, without leave of the Tribunal of any of the properties or effects of the company, after such commencement, shall be void.

(2) Nothing in this section shall apply to any proceedings for the recovery of any tax or impost or any dues payable to the Government.

 

Section 336 of Indian Companies Act 2013 "Offences by officers of companies in liquidation"

(1) If any person, who is or has been an officer of a company which, at the time of the commission of the alleged offence, is being wound up, whether by the Tribunal or voluntarily, or which is subsequently ordered to be wound up by the Tribunal or which subsequently passes a resolution for voluntary winding up,-

(a) does not, to the best of his knowledge and belief, fully and truly disclose to the Company Liquidator all the property, movable and immovable, of the company, and how and to whom and for what consideration and when the company disposed of any part thereof, except such part as has been disposed of in the ordinary course of the business of the company;

(b) does not deliver up to the Company Liquidator, or as he directs, all such part of the movable and immovable property of the company as is in his custody or under his control and which he is required by law to deliver up;

(c) does not deliver up to the Company Liquidator, or as he directs, all such books and papers of the company as are in his custody or under his control and which he is required by law to deliver up;

(d) within the twelve months immediately before the commencement of the winding up or at any time thereafter, -

(i) conceals any part of the property of the company to the value of one thousand rupees or more, or conceals any debt due to or from the company;

(ii) fraudulently removes any part of the property of the company to the value of one thousand rupees or more;

(iii) conceals, destroys, mutilates or falsifies, or is privy to the concealment, destruction, mutilation or falsification of, any book or paper affecting or relating to, the property or affairs of the company;

(iv) makes, or is privy to the making of, any false entry in any book or paper affecting or relating to, the property or affairs of the company;

(v) fraudulently parts with, alters or makes any omission in, or is privy to the fraudulent parting with, altering or making of any omission in, any book or paper affecting or relating to the property or affairs of the company;

(vi) by any false representation or other fraud, obtains on credit, for or on behalf of the company, any property which the company does not subsequently pay for;

(vii) under the false pretence that the company is carrying on its business, obtains on credit, for or on behalf of the company, any property which the company does not subsequently pay for; or

(viii) pawns, pledges or disposes of any property of the company which has been obtained on credit and has not been paid for, unless such pawning, pledging or disposing of the property is in the ordinary course of business of the company;

(e) makes any material omission in any statement relating to the affairs of the company;

(f) knowing or believing that a false debt has been proved by any person under the winding up, fails for a period of one month to inform the Company Liquidator thereof;

(g) after the commencement of the winding up, prevents the production of any book or paper affecting or relating to the property or affairs of the company;

(h) after the commencement of the winding up or at any meeting of the creditors of the company within the twelve months next before the commencement of the winding up, attempts to account for any part of the property of the company by fictitious losses or expenses; or

(i) is guilty of any false representation or fraud for the purpose of obtaining the consent of the creditors of the company or any of them, to an agreement with reference to the affairs of the company or to the winding up, he shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to five years and with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees:

Provided that it shall be a good defence if the accused proves that he had no intent to defraud or to conceal the true state of affairs of the company or to defeat the law.

Punishment for violation of Section 336 of Companies Act 2013

(2) Where any person pawns, pledges or disposes of any property in circumstances which amount to an offence under sub-clause (viii) of clause (d) of sub-section (1), every person who takes in pawn or pledge or otherwise receives the property, knowing it to be pawned, pledged, or disposed of in such circumstances as aforesaid, shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to five years and with fine which shall not be less than three lakh rupees but which may extend to five lakh rupees.

Explanation.—For the purposes of this section, the expression “officer” includes any person in accordance with whose directions or instructions the directors of the company have been accustomed to act.

What is Arrangement when binding on company and creditors? What is Power to apply to Tribunal to have questions determined, etc? Section 321 and 322 of Indian Companies Act 2013

What is Costs of voluntary winding up? Is Debts of all descriptions to be admitted to proof?Section 323 and 324 of Indian Companies Act 2013

What is Application of insolvency rules in winding up of insolvent companies? What is Overriding preferential payments? Section 325 and 326 of Indian Companies Act 2013

What is Preferential payments? What is Fraudulent preference? Section 327 and 328 of Indian Companies Act 2013

What is Transfers not in good faith to be void? Certain transfers to be void. Section 329 and 330 of Indian Companies Act 2013

What is Liabilities and rights of certain persons fraudulently preferred? What is effect of floating charge? Section 331 and 332 of Indian Companies Act 2013

What is Disclaimer of onerous property? Is Transfers, etc., after commencement of winding up to be void? Section 333 and 334 of Indian Companies Act 2013

What is certain attachments, executions, etc., in winding up by Tribunal to be void? What are Offences by officers of companies in liquidation? Section 335 and 336 of Indian Companies Act 2013

What is Penalty for frauds by officers? What is Liability where proper accounts not kept? Section 337 and 338 of Indian Companies Act 2013

What is Liability for fraudulent conduct of business? What is Power of Tribunal to assess damages against delinquent directors, etc? Section 339 and 340 of Indian Companies Act 2013

 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap