Receive Daily Updates by Email (Free Subscription)

Section 452 Of Companies Act 2013: Punishment For Wrongful Withholding Of Property

Corporate Law (Country: India)

SECTION-452 (Punishment for wrongful withholding of property) under CHAPTER-XXIX (Miscellaneous) of the Companies Act, 2013

(1) If any officer or employee of a company—
(a) wrongfully obtains possession of any property, including cash of the company; or 
(b) having any such property including cash in his possession, wrongfully withholds it or knowingly applies it for the purposes other than those expressed or directed in the articles and authorised by this Act,
he shall, on the complaint of the company or of any member or creditor or contributory thereof, be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.


(2) The Court trying an offence under sub-section (1) may also order such officer or employee to deliver up or refund, within a time to be fixed by it, any such property or cash wrongfully obtained or wrongfully withheld or knowingly misapplied, the benefits that have been derived from such property or cash or in default, to undergo imprisonment for a term which may extend to two years.






Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013) - link

(2) Section 452 of the Companies Act 2013 was notified by MCA Notification S.O. 2754(E) dated 12th September 2013 (w.e.f. 12th September 2013) - link








This page was last updated on 6th June, 2017.

No comments:

Post a Comment

Share your valuable opinion or your query here.