Section 306 of the Companies Act, 2013
Section 306 of the Companies Act, 2013
– Continuation of certain penalties and liabilities
📜 Summary of Section 306:
Section 306 deals with the continuation of penalties, forfeitures, and liabilities even after the amendment or repeal of any provision of the Companies Act, 2013.
✅ Key Provisions:
When any penalty, forfeiture, or liability is imposed or incurred under a provision of the Act, and that provision is later amended or repealed, the penalty or liability will continue as if the amendment or repeal had not happened.
This means that even if the law changes, any punishment or responsibility that arose before the change remains valid and enforceable.
📌 Purpose:
To ensure that companies or persons cannot avoid penalties or liabilities just because the law changes.
Protects the legal continuity of enforcement and punishment.
🧾 Example:
If a company was penalized for not filing annual returns under an earlier provision, and that provision was later repealed or amended, the penalty still holds and must be paid.
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