Receive Daily Updates by Email (Free Subscription)

Section 75 of the Companies Act 2013: Damages for Fraud

SECTION-75 (Damages for Fraud) under CHAPTER-V (Acceptance of Deposits by Companies) of the Companies Act, 2013


(1) Where a company fails to repay the deposit or part thereof or any interest thereon referred to in section 74 within the time specified in sub-section (1) of that section or such further time as may be allowed by the Tribunal under sub-section (2) of that section, and it is proved that the deposits had been accepted with intent to defraud the depositors or for any fraudulent purpose, every officer of the company who was responsible for the acceptance of such deposit shall, without prejudice to the provisions contained in sub-section (3) of that section and liability under section 447, be personally responsible, without any limitation of liability, for all or any of the losses or damages that may have been incurred by the depositors.

(2) Any suit, proceedings or other action may be taken by any person, group of persons or any association of persons who had incurred any loss as a result of the failure of the company to repay the deposits or part thereof or any interest thereon.







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 75 of the Companies Act, 2013 was notified by MCA Notification S.O. 1934(E) dated 1st June 2016 (w.e.f. 1st June 2016) - link

(3) Further, refer the following rule(s) of the Companies (Acceptance of Deposits) Rules, 2014 - link

[Note: please also check any further amendments to the Companies (Acceptance of Deposits) Rules, 2014]




This page was last updated on 28th February, 2017.

No comments:

Post a Comment

Share your valuable opinion or your query here.