Section 241 of Companies Act, 2013 – Application to Tribunal for relief in cases of oppression, etc.

  • Updated Till : November 03, 2024

SECTION 241. APPLICATION TO TRIBUNAL FOR RELIEF IN
CASES OF OPPRESSION, ETC.

 [Effective from 1st June, 2016]

(1) Any member of a company who complains that—

(a)   the affairs of the company have been or are being conducted in a manner prejudicial to public interest or in a manner prejudicial or oppressive to him or any other member or members or in a manner prejudicial to the interests of the company; or

(b)   the material change, not being a change brought about by, or in the interests of, any creditors, including debenture holders or any class of shareholders of the company, has taken place in the management or control of the company, whether by an alteration in the Board of Directors, or manager, or in the ownership of the company’s shares, or if it has no share capital, in its membership, or in any other manner whatsoever, and that by reason of such change, it is likely that the affairs of the company will be conducted in a manner prejudicial to its interests or its members or any class of members,

may apply to the Tribunal, provided such member has a right to apply under section 244, for an order under this Chapter.

(2) The Central Government, if it is of the opinion that the affairs of the company are being conducted in a manner prejudicial to public interest, it may itself apply to the Tribunal for an order under this Chapter.

[1] [Provided that the applications under this sub-section, in respect of such company or class of companies, as may be prescribed, shall be made before the Principal Bench of the Tribunal which shall be dealt with by such Bench.]

[2] [(3) Where in the opinion of the Central Government there exist circumstances suggesting that––

(a) any person concerned in the conduct and management of the affairs of a company is or has been in connection therewith guilty of fraud, misfeasance, persistent negligence or default in carrying out his obligations and functions under the law or of breach of trust;

(b) the business of a company is not or has not been conducted and managed by such person in accordance with sound business principles or prudent commercial practices;

(c) a company is or has been conducted and managed by such person in a manner which is likely to cause, or has caused, serious injury or damage to the interest of the trade, industry or business to which such company pertains; or

(d) the business of a company is or has been conducted and managed by such person with intent to defraud its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose or in a manner prejudicial to public interest,

the Central Government may initiate a case against such person and refer the same to the Tribunal with a request that the Tribunal may inquire into the case and record a decision as to whether or not such person is a fit and proper person to hold the office of director or any other office connected with the conduct and management of any company.

(4) The person against whom a case is referred to the Tribunal under sub-section (3), shall be joined as a respondent to the application.

(5) Every application under sub-section (3)––

(a) shall contain a concise statement of such circumstances and materials as the Central Government may consider necessary for the purposes of the inquiry; and

(b) shall be signed and verified in the manner laid down in the Code of Civil Procedure, 1908, for the signature and verification of a plaint in a suit by the Central Government.]

[1] Inserted vide the Companies (Amendment) Act, 2019 vide Notification No. S.O. 2947(E), dated 14th August, 2019 effective from 15th August, 2019.

[2] Inserted vide the Companies (Amendment) Act, 2019 vide Notification No. S.O. 2947(E), dated 14th August, 2019 effective from 15th August, 2019.

14 responses to “Section 241 of Companies Act, 2013 – Application to Tribunal for relief in cases of oppression, etc.”

  1. Dear corporatelawreporter.com admin, Thanks for the well-researched and well-written post!

  2. Kamran says:

    This paragraph is in fact a fastidious one it helps new the web users, who
    are wishing for blogging.

  3. Whitt says:

    Way cool! Some extremely valid points! I appreciate you writing this article plus the rest of the site is also really good.

  4. Charels says:

    bookmarked!!, I really like your web site!

  5. Ariann says:

    If some one needs to be updated with most up-to-date technologies after that he must be go to see this site and be up to date everyday.

  6. Shanequa says:

    Greetings from Carolina! I’m bored at work so I decided to check out your site on my iphone
    during lunch break. I really like the information you
    present here and can’t wait to take a look when I get home.
    I’m surprised at how quick your blog loaded on my cell phone ..

    I’m not even using WIFI, just 3G .. Anyhow, good blog!

  7. Rosalyn says:

    Appreciation to my father who informed me regarding this webpage,
    this webpage is really remarkable.

  8. Chang says:

    I for all time emailed this blog post page to all my associates,
    for the reason that if like to read it afterward my links
    will too.

  9. Esteban says:

    you are actually a excellent webmaster. The website loading velocity is amazing.
    It kind of feels that you are doing any distinctive trick.
    In addition, The contents are masterwork. you’ve performed
    a fantastic activity in this topic!

  10. Dianne says:

    This design is steller! You most certainly know how to keep a reader amused.
    Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Great job.
    I really enjoyed what you had to say, and more than that,
    how you presented it. Too cool!

  11. Cathleen says:

    Hi! Do you know if they make any plugins to protect against
    hackers? I’m kinda paranoid about losing everything I’ve worked
    hard on. Any recommendations?

  12. Gabriela says:

    Thank you for every other magnificent article. Where else could anyone
    get that type of information in such a perfect way of writing?
    I have a presentation next week, and I am at the search for such info.

  13. Mickie says:

    Great article.

  14. Kathlene says:

    Hello I am so glad I found your weblog, I really found you by error,
    while I was researching on Yahoo for something else, Anyhow I am here now and would just like to say thanks for a fantastic post and a all round exciting blog (I
    also love the theme/design), I don’t have time to read it all at the minute but I
    have saved it and also added in your RSS feeds, so when I
    have time I will be back to read a lot more, Please do keep up the excellent work.

Leave a Reply

Your email address will not be published. Required fields are marked *

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Recent Articles

Recent Legal updates

Recent Gst Updates