Section 336 of the Companies Act, 2013
Section 336 of the Companies Act, 2013
– Offences by officers of companies in liquidation
📜 Overview:
Section 336 deals with criminal offenses committed by the officers of a company that is under liquidation (i.e., being shut down or wound up). It penalizes fraud, concealment, and misconduct by such officers.
✅ Key Provisions:
An officer of a company in liquidation shall be punished with imprisonment (up to 5 years) or fine (up to ₹5 lakhs) or both, if they:
🔒 1. Conceal Company Property:
Hide, transfer, or remove any part of the company’s property worth ₹1,000 or more.
📄 2. Destroy or Falsify Documents:
Destroy, mutilate, alter, or falsify any book, paper, or security belonging to the company.
📚 3. False Entries:
Make false entries in any documents with the intent to deceive.
🕵️♂️ 4. Fraudulent Disposal of Property:
Sell, pledge, or otherwise dispose of the company’s property with fraudulent intent.
💰 5. Unlawful Loans or Credit:
Obtain loans or credit by false representation or fraud.
❌ 6. Misrepresentation or Non-disclosure:
Fail to disclose property, debts, or receivables in their custody or control.
📦 7. Wrongful Taking of Company Property:
Knowingly take or use company property for personal benefit.
⚖️ Punishment:
Imprisonment: Up to 5 years,
Fine: Up to ₹5,00,000,
Or both.
🧾 Example:
If a director of XYZ Ltd. (under liquidation) secretly sells company assets and pockets the money, they can be charged under Section 336 for fraudulent disposal and concealment of property.
📌 Summary Table:
| Offense | Punishment |
|---|---|
| Concealing property, destroying documents, fraud | Up to 5 years imprisonment or ₹5 lakh fine or both |
| False representation, misuse of assets | Same as above |
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