Section 301 of Companies Act, 2013 – Arrest of person trying to leave India or abscond

  • Updated Till : December 03, 2022

SECTION 301. ARREST OF PERSON TRYING TO LEAVE INDIA OR ABSCOND

[Effective from 15th December, 2016]

At any time either before or after passing a winding up order, if the Tribunal is satisfied that a contributory or a person having property, accounts or papers of the company in his possession is about to leave India or otherwise to abscond, or is about to remove or conceal any of his property, for the purpose of evading payment of calls or of avoiding examination respecting the affairs of the company, the Tribunal may cause—

(a)   the contributory to be detained until such time as the Tribunal may order; and

(b)   his books and papers and movable property to be seized and safely kept until such time as the Tribunal may order.

Applicable Rules

Companies (Winding Up) Rules, 2020

[Effective from 1st April, 2020]

Rule 150. Warrant of arrest of contributory.—(1) If the Tribunal is satisfied as referred to in section 301 and that notice of the date and hour fixed for the examination was duly served on such contributory, the Tribunal may, issue without any further notice, a warrant in Form WIN 68 for the arrest of the said contributory.

(2) Every warrant of arrest of the contributory issued under this rule shall remain in force until it is cancelled by the Tribunal which issued it or by the Appellate Tribunal to which appeals ordinarily lie from the decisions of such Tribunal, or until it is executed.

Rule 151. Prison to which contributory arrested on warrant is to be taken.—Where the Tribunal issues a warrant for the arrest of the contributory as referred to in section 301, the prison in which such contributory shall be detained, shall, unless the Tribunal otherwise orders, be specified in the order of the Tribunal in the exercise of its powers under the Act, and the warrant for keeping the said contributory in prison shall be in Form WIN 69 and the order of releasing him on bail shall be in Form WIN 70.

Rule 152. Execution of warrant of arrest outside jurisdiction of Tribunal.—(1) Where a warrant has been issued by the Tribunal under these rules for the arrest of a contributory who is or is believed to be outside the jurisdiction of the Tribunal, the Tribunal issuing the warrant may send the warrant of arrest for execution to the District Court or, to the Court of Small Causes at Bombay, Calcutta or Madras (if the warrant has to be executed in any of these places) within the ordinary jurisdiction of which such contributory shall then be or be believed to be, with a requisition in Form WIN 71 annexed thereto under the seal of the Tribunal requesting execution of the warrant by the Court to which it is sent and the last mentioned Court shall seal the warrant with its seal and shall cause the arrest to be made by its own officers or by a Court subordinate to it and the concerned police officers shall aid and assist within their respective jurisdiction in the execution of such warrant.

(2) The Court making the arrest shall send the contributory arrested in proper custody to the Tribunal by which the warrant of arrest was originally issued, unless he furnishes the required security to the satisfaction of the Court for his appearance before the Tribunal, in which case the Court shall release him on such security and inform the Tribunal by which the warrant of arrest was originally issued.

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