Section 336 — 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, 2[by
the Tribunal under this Act or which is subsequently ordered to be wound up by the Tribunal under this
Act],—
(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;
1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 334 (w.e.f. 15-11-2016).
2. Subs. by s. 255 and the Eleventh Schedule, ibid., for “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” (w.e.f. 15-11-2016).
(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 befor e 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 af fairs 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 t he 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 sha ll 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.
(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.
Related sections
- Section 273 — Powers of Tribunal
- Section 274 — Directions for filing statement of affairs
- Section 275 — Company Liquidators and their appointments
- Section 276 — Removal and replacement of liquidator
- Section 277 — Intimation to Company Liquidator, provisional liquidator and Registrar
- Section 278 — Effect of winding up order
- Section 279 — Stay of suits, etc., on winding up order
- Section 281 — Submission of report by Company Liquidator
- Section 282 — Directions of Tribunal on report of Company Liquidator
- Section 283 — Custody of company’s properties
- Section 284 — Promoters , directors, etc., to cooperate with Company Liquidator
- Section 285 — Settlement of list of contributories and application of assets
- Section 286 — Obligations of directors and managers
- Section 287 — Advisory committee
- Section 288 — Submission of periodical reports to Tribunal
- Section 289 — [Power of Tribunal on application for stay of winding up .] Omitted by the Insolvency and
- Section 290 — Powers and duties of Company Liquidator
- Section 291 — Provision for professional assistance to Company Liquidator
- Section 292 — Exercise and control of Company Liquidator’s powers
- Section 293 — Books to be kept by Company Liquidator
- Section 294 — Audit of Company Liquidator’s accounts
- Section 295 — Payment of debts by contributory and extent of set -off
- Section 296 — Power of Tribunal to make calls
- Section 297 — Adjustment of rights of contributories
- Section 298 — Power to order costs
- Section 299 — Power to summon persons suspected of having property of company, etc
- Section 300 — Power to order examination of promoters, directors, etc
- Section 301 — Arrest of person trying to leave India or abscond
- Section 302 — Dissolution of company by Tribunal
- Section 303 — Appeals from orders made before commencement of Act
- Section 320 — [Distribution of property of company .] Omitted by s . 255 and the Eleventh Schedule, ibid
- Section 321 — [ Arrangement when binding on company and creditors .] Omitted by the Insolvency and
- Section 322 — [Power to apply to Tribunal to have questions determined, etc.] Omitted by s. 255 and the Eleventh
- Section 324 — Debts of all descriptions to be admitted to proof
- Section 327 — Preferential payments
- Section 328 — Fraudulent preference
- Section 330 — Certain transfers to be void
- Section 331 — Liabilities and rights of certain persons fraudulently preferred
- Section 332 — Effect of floating charge
- Section 333 — Disclaimer of onerous property
- Section 335 — Certain attachments, executions, etc., in winding up by Tribunal to be void
- Section 337 — Penalty for frauds by officers
- Section 338 — Liability where proper accounts not kept
- Section 339 — Liability for fraudulent conduct of business
- Section 340 — Power of Tribunal to assess damages against delinquent directors, etc
- Section 341 — Liability under sections 339 and 340 to extend to partners or directors in firms or
- Section 342 — Prosecution of delinquent officers and members of company
- Section 343 — Company Liquidator to exercise certain powers subject to sanction
- Section 344 — Statement that company is in liquidation
- Section 345 — Books and papers of company to be evidence
- Section 346 — Inspection of bo oks and papers by creditors and contributories
- Section 347 — Disposal of books and papers of company
- Section 348 — Information as to pending liquidations
- Section 349 — Official Liquidator to make payments into public account of India
- Section 350 — Company Liquidator to deposit monies into scheduled bank
- Section 351 — Liquidator not to deposit monies into private banking account
- Section 352 — Company Liquidation Dividend and Undistributed Assets Account
- Section 353 — Liquidator to make returns, etc
- Section 354 — Meetings to ascertain wishes of creditors or contributories
- Section 355 — Court, tribunal or person, etc., before whom affidavit may be sworn
- Section 356 — Powers of Tribunal to declare dissolution of company void
- Section 358 — Exclusion of certain time in computing period of limitation
- Section 359 — Appointment of Official Liquidator
- Section 360 — Powers and functions of Official Liquidator
- Section 361 — Summary procedure for liquidation
- Section 362 — Sale of assets and recovery of debts due to company
- Section 363 — Settlement of claims of creditors by Official Liquidator
- Section 364 — Appeal by creditor
- Section 365 — Order of dissolution of company