Chapter 20 - Corporate Law Reporter

Section 339 of Companies Act, 2013 – Liability for fraudulent conduct of business

SECTION 339. LIABILITY FOR FRAUDULENT CONDUCT OF BUSINESS [Effective from 9th September, 2016 (to the extent of their applicability to Section 246), complete section effective from 15th December, 2016] (1) If in the course of the winding up of a company, it appears that any business of the company has been carried on with intent to… Read More

Section 338 of Companies Act, 2013 – Liability where proper accounts not kept

SECTION 338. LIABILITY WHERE PROPER ACCOUNTS NOT KEPT [Effective from 9th September, 2016 (to the extent of their applicability to Section 246), complete section effective from 15th December, 2016] (1) Where a company is being wound up, if it is shown that proper books of account were not kept by the company throughout the period of… Read More

Section 337 of Companies Act, 2013 – Penalty for frauds by officers

SECTION 337. PENALTY FOR FRAUDS BY OFFICERS [Effective from 9th September, 2016 (to the extent of their applicability to Section 246), complete section effective from 15th December, 2016] If any person, being at the time of the commission of the alleged offence an officer of a company which is subsequently ordered to be wound up by… Read More

Section 336 of Companies Act, 2013 – Offences by officers of companies in liquidation

SECTION 336. OFFENCES BY OFFICERS OF COMPANIES IN LIQUIDATION [Effective from 15th December, 2016] (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… Read More

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

SECTION 335. CERTAIN ATTACHMENTS, EXECUTIONS, ETC., IN WINDING UP BY TRIBUNAL TO BE VOID [Effective from 15th December, 2016] (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… Read More

Section 334 of Companies Act, 2013 – Transfers, etc., after commencement of winding up to be void

SECTION 334. TRANSFERS, ETC., AFTER COMMENCEMENT OF WINDING UP TO BE VOID [Effective from 15th December, 2016] (1) In the case of a voluntary winding up, any transfer of shares in the company, not being a transfer made to or with the sanction of the Company Liquidator, and any alteration in the status of the… Read More

Section 333 of Companies Act, 2013 – Disclaimer of onerous property

SECTION 333. DISCLAIMER OF ONEROUS PROPERTY [Effective from 15th December, 2016] (1) Where any part of the property of a company which is being wound up consists of— (a) land of any tenure, burdened with onerous covenants; (b) shares or stocks in companies; (c) any other property which is not saleable or is not readily… Read More

Section 332 of Companies Act, 2013 – Effect of floating charge

SECTION 332. EFFECT OF FLOATING CHARGE [Effective from 15th December, 2016] Where a company is being wound up, a floating charge on the undertaking or property of the company created within the twelve months immediately preceding the commencement of the winding up, shall, unless it is proved that the company immediately after the creation of… Read More

Section 331 of Companies Act, 2013 – Liabilities and rights of certain persons fraudulently preferred

SECTION 331. LIABILITIES AND RIGHTS OF CERTAIN PERSONS FRAUDULENTLY PREFERRED [Effective from 15th December, 2016] (1) Where a company is being wound up and anything made, taken or done after the commencement of this Act is invalid under section 328 as a fraudulent preference of a person interested in property mortgaged or charged to secure… Read More

Section 329 of Companies Act, 2013 – Transfers not in good faith to be void

SECTION 329. TRANSFERS NOT IN GOOD FAITH TO BE VOID [Effective from 15th December, 2016] Any transfer of property, movable or immovable, or any delivery of goods, made by a company, not being a transfer or delivery made in the ordinary course of its business or in favour of a purchaser or encumbrance in good… Read More

Section 328 of Companies Act, 2013 – Fraudulent preference

SECTION 328. FRAUDULENT PREFERENCE [Effective from 15th December, 2016] (1) Where a company has given preference to a person who is one of the creditors of the company or a surety or guarantor for any of the debts or other liabilities of the company, and the company does anything or suffers anything done which has… Read More

Section 327 of Companies Act, 2013 – Preferential payments

SECTION 327. PREFERENTIAL PAYMENTS [Effective from 15th December, 2016] (1) In a winding up, subject to the provisions of section 326, there shall be paid in priority to all other debts,— (a) all revenues, taxes, cesses and rates due from the company to the Central Government or a State Government or to a local authority… Read More

Section 326 of Companies Act, 2013 – Overriding preferential payments

SECTION 326. OVERRIDING PREFERENTIAL PAYMENTS [Effective from 15th December, 2016] (1) Notwithstanding anything contained in this Act or any other law for the time being in force, in the winding up of a company,— (a) workmen's dues; and (b) debts due to secured creditors to the extent such debts rank under clause (iii) of the… Read More