Section 439 of the Companies Act, 2013
📘 Section 439 of the Companies Act, 2013
Title: Offences to be non-cognizable
✅ Summary:
Section 439 of the Companies Act, 2013 declares that offences under the Act are non-cognizable, meaning:
The police cannot arrest a person without prior approval of the court.
They also cannot start an investigation without permission from a Magistrate.
🧾 Key Provisions:
Non-cognizable nature:
All offences under the Companies Act, 2013 shall be non-cognizable, notwithstanding anything in the Code of Criminal Procedure (CrPC), 1973.
Exception — Fraud (Section 447):
However, offences under Section 447 (i.e., fraud) are cognizable and non-bailable, meaning:
Police can arrest without a warrant.
The accused does not have the automatic right to bail.
Court's power to take cognizance:
Only a Special Court (designated under the Act) can take cognizance of offences under this Act upon:
A complaint made by the Registrar, shareholder, or any other authorized person, or
On a report in writing by a regulatory authority like the SFIO (Serious Fraud Investigation Office).
⚖️ Purpose:
To prevent misuse of police powers in corporate matters while still maintaining seriousness in cases like fraud. It ensures that company law violations are handled primarily through legal and regulatory channels.
RELATED Blog
0 comments