Companies Act 2013 Sections 421 to 470
Sections 421 to 470 of the Companies Act, 2013 bring together important provisions on appeals from the National Company Law Tribunal, procedure before the Tribunal and Appellate Tribunal, Special Courts, compounding of offences, fraud and false statements, adjudication of penalties, dormant companies and miscellaneous powers of the Central Government.
Overview of Sections 421 to 470
Sections 421 to 434 principally concern the Tribunal and Appellate Tribunal, including appeals, procedure, contempt, limitation, legal representation and transfer of proceedings. Sections 435 to 446B address Special Courts and related criminal or compounding procedure. Sections 447 to 470 contain provisions on fraud, false statements and evidence, penalties, adjudication, dormant companies, relief, exemptions, repeal and rule-making powers.
Key legal provisions
Tribunal and appellate remedies
Section 421 provides the statutory route of appeal from orders of the Tribunal to the Appellate Tribunal, subject to the conditions and limitation prescribed by the Act. Section 423 provides for an appeal to the Supreme Court on a question of law arising from an order of the Appellate Tribunal. Section 424 governs procedure before the Tribunal and Appellate Tribunal and reflects the statutory framework under which those bodies regulate proceedings.
Special Courts and offences
Sections 435 to 440 deal with Special Courts, trial of offences, appeal and revision, application of criminal procedure, the treatment of offences as non-cognizable, and transitional matters. Section 441 deals with compounding of eligible offences. Sections 446A and 446B address factors relevant to punishment and the statutory lesser-penalty framework for specified classes of companies.
Fraud, false statements and penalties
Section 447 is the principal provision prescribing punishment for fraud under the Act. Section 448 applies where a person makes a materially false statement, or omits a material fact knowing it to be material, in specified corporate documents. Section 449 concerns false evidence. Sections 450 to 454A cover residual and repeated defaults and the adjudication of monetary penalties.
Miscellaneous corporate-law powers
Sections 455 to 470 include dormant-company status, statutory protections, non-disclosure in specified cases, delegation of Central Government powers, conditional approvals and fees, condonation of delay, exemptions, court relief, restrictions on large unregistered associations or partnerships, repeal and savings, amendment of Schedules, winding-up rules, general rule-making and removal of difficulties.
Section-wise guides
- Appeal from orders of Tribunal - Expeditious disposal by Tribunal and Appellate Tribunal Section 421 and 422 of Indian Companies Act 2013
- Appeal to Supreme Court - Procedure before Tribunal and Appellate Tribunal Section 423 and 424 of Indian Companies Act 2013
- Power to punish for contempt - delegation of powers President, Members, officers, etc., to be public servants Section 425, 426 and 427 of Indian Companies Act 2013
- Protection of action taken in good faith - Power to seek assistance of Chief Metropolitan Magistrate, etc - Civil court not to have jurisdiction Section 428, 429 and 430 of Indian Companies Act 2013
- Vacancy in Tribunal or Appellate Tribunal not to invalidate acts or proceedings - Right to legal representation Section 431 and 432 of Indian Companies Act 2013
- Limitation - Transfer of certain pending proceedings Section 433 and 434 of Indian Companies Act 2013
- Establishment of Special Courts What re Offences triable by Special Courts Section 435 and 436 of Indian Companies Act 2013
- Appeal and revision - Application of Code to proceedings before Special Court - Offences to be non cognizable - Transitional provisions Section 437, 438, 439 and 440 of Indian Companies Act 2013
- Compounding of certain offences - Mediation and Conciliation Panel Section 441 and 442 of Indian Companies Act 2013
- Power of Central Government to appoint company prosecutors - appeal against acquittal - Compensation for accusation without reasonable cause Section 443, 444 and 445 of Indian Companies Act 2013
- Application of fines - Punishment for fraud - Punishment for false evidence Section 446, 447 and 448 of Indian Companies Act 2013
- Section 446A Factors for determining level of punishment
- Section 446B Lesser penalties for One Person Companies or small companies
- Punishment for false evidence - Punishment where no specific penalty or punishment is provided - Punishment in case of repeated default Section 449, 450 and 451 of Indian Companies Act 2013
- Punishment for wrongful withholding of property - Punishment for improper use of Limited or Private Limited Section 452 and 453 of Indian Companies Act 2013
- Adjudication of penalties - Dormant company Section 454 and 455 of Indian Companies Act 2013
- Section 454A Penalty for repeated default
- Protection of action taken in good faith - Nondisclosure of information in certain cases - Delegation by Central Government of its powers and functions Section 456, 457 and 458 of Indian Companies Act 2013
- Powers of Central Government or Tribunal to accord approval, etc., subject to conditions and to prescribe fees on applications - Condonation of delay in certain cases Section 459 and 460 of Indian Companies Act 2013
- Annual report by Central Government - Power to exempt class or classes of companies from provisions of this Act Section 461 and 462 of Indian Companies Act 2013
- Power of court to grant relief in certain cases - Prohibition of association or partnership of persons exceeding certain number Section 463 and 464 of Indian Companies Act 2013
- Repeal of certain enactments and savings Section 465 of Indian Companies Act 2013
- Dissolution of Company Law Board and consequential provisions - the Power of Central Government to amend Schedules Section 466 and 467 of Indian Companies Act 2013
- Powers of Central Government to make rules relating to winding up - Power of Central Government to make rules - Power to remove difficulties Section 468, 469 and 470 of Indian Companies Act 2013
Practical reading note
The Companies Act, 2013 has been amended on multiple occasions. Penalty provisions, procedural requirements and the classes of companies receiving statutory concessions may therefore differ from older versions of the Act. For compliance, litigation or prosecution matters, verify the provision applicable on the relevant date together with the rules, amendment Acts and notifications then in force.