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Sec 251 Companies Act 2013: Fraudulent application for name removal

SECTION-251 (Fraudulent application for removal of name) under CHAPTER-XVIII (Removal of Names of Companies from the Register of Companies) of the Companies Act, 2013

(1) Where it is found that an application by a company under sub-section (2) of section 248 has been made with the object of evading the liabilities of the company or with the intention to deceive the creditors or to defraud any other persons, the persons in charge of the management of the company shall, notwithstanding that the company has been notified as dissolved—

  (a) be jointly and severally liable to any person or persons who had incurred loss or damage as a result of the company being notified as dissolved; and

  (b) be punishable for fraud in the manner as provided in section 447.

(2) Without prejudice to the provisions contained in sub-section (1), the Registrar may also recommend prosecution of the persons responsible for the filing of an application under sub-section (2) of section 248.

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).

(2) Section 251 of the Companies Act 2013 was notified by MCA Notification S.O. 4167(E) dated 26th December, 2016 (w.e.f. 26th December, 2016).

This page was last updated on 3rd May, 2017.

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