What is Application of fines What is Punishment for fraud What is Punishment for false evidence Section 446, 447 and 448 of Indian Companies Act 2013

Application of fines, Punishment for fraud and Punishment for false evidence are defined under Section 446, 447  and 448 of Indian Companies Act 2013. Provisions under these Sections are:

 

Section 446 of Indian Companies Act 2013 "Application of fines"

The court imposing any fine under this Act may direct that the whole or any part thereof shall be applied in or towards payment of the costs of the proceedings, or in or towards the payment of a reward to the person on whose information the proceedings were instituted.


 

Section 447 of Indian Companies Act 2013 "Punishment for fraud"

Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is found to be guilty of fraud, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to ten years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud:

Provided that where the fraud in question involves public interest, the term of imprisonment shall not be less than three years.

Explanation. For the purposes of this section -

(i) fraud in relation to affairs of a company or any body corporate, includes any act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss;

(ii) wrongful gain means the gain by unlawful means of property to which the person gaining is not legally entitled;

(iii) wrongful loss means the loss by unlawful means of property to which the person losing is legally entitled.

 

Section 448 of Indian Companies Act 2013 "Punishment for false statement"

Save as otherwise provided in this Act, if in any return, report, certificate, financial statement, prospectus, statement or other document required by, or for, the purposes of any of the provisions of this Act or the rules made there under, any person makes a statement, -

(a) which is false in any material particulars, knowing it to be false; or

(b) which omits any material fact, knowing it to be material, he shall be liable under section 447.

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