Special Courts Under The Companies Act, 2013 Notified

Posted 11 months ago  |    1  |   Views: 397
Civil Litigation,Corporate Law
Deepika Gill

Special Courts Under the Companies Act, 2013 Notified

To give quick transfer of offenses culpable under the Companies Act, 2013, which are culpable with detainment of 2 years or more, the Ministry of Corporate Affairs has advised the procurements managing 'Special Courts' with impact from 18 May 2016. The goal behind setting up these courts is to let justice courts attempt minor infringement, and that graver offenses ought to be managed by Special Courts.


Existing courts in the State of Maharashtra, Jammu and Kashmir, Goa, Gujarat, Madhya Pradesh, West Bengal, and Union domain of Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu, have been assigned as Special Courts for purposed of trying offenses under the Companies Act, 2013. According to the notification, these courts have been assigned for the purposes behind trial of offenses culpable under the Companies Act, 2013 with detainment of 2 years or more.


According to the provisios of the Companies Act, 2013, after offenses are triable by Special Courts:

(i) offenses for which the Companies Act, 2013, accommodates detainment of 2 years or more;

(ii) cases sent by a Magistrate (where he supposes confinement is superfluous) for any offense conferred under the Companies Act, 2013. This provision will become possibly the most important factor when a person is captured and kept in care, and it creates the impression that the examination can't be finished inside the time of 24 hours as required under the Code of Criminal Procedure, 1973 (CrPC) and there are justifications for trusting that the allegation or data is all around established, and detainment is approved by Magistrate for a period not surpassing 15 days (if requested by Judicial Magistrate) or 7 days (if requested by Executive Magistrate), all things considered. In such cases, the Special Court has the same force as the Magistrate having ward to attempt such case;

(iii) take awareness of an offense under the Companies Act, 2013, without the charged being focused on it for trial upon: (a) scrutiny of the police report of the actualities constituting such offense, or (b) if an objection has been documented for that benefit;

(iv) attempt at the same trial an offense for which a denounced might be charged under CrPC notwithstanding an offense under the Companies Act, 2013;

(v) if the Special Court thinks fit, it might attempt summarily, any offense under the Companies Act, 2013, which is culpable with detainment for a term not surpassing 3 years, gave that on account of any conviction in such trial, individual can't be sentenced for detainment for a term surpassing 1 year.


Eminently, for the reasons for enlivening request and modification, the High Court have been allowed ward, as though the Special Court inside the neighbourhood furthest reaches of the purview of the High Court were a Court of Session attempting cases inside the nearby furthest reaches of the locale of the High Court.

Offences Under the Companies Act, 2013, for Which Minimum Punishment is 2 Years or More

Sr. No.


Who is punishable?



False declaration of solvency by a Director during voluntary winding up




Intentionally and fraudulently concealing material information about the company, relating to properties, debts, creditors, financial statements from the Company Liquidator during winding up

Officer (including any person in accordance with whose directions or instructions the directors of the company have been accustomed to act)

Section 336(1)


Fraudulently misrepresenting material information about the company to the Company Liquidator during winding up




Taking in pawn or pledge or otherwise receipt of the property, knowing it to be pawned, pledged, or disposed of wherein such property was pawned, pledged or disposed off (in 12 months preceding the commencement of the winding up) on credit and not been paid for and was not in the ordinary course of business

Any person who does such act knowingly

Section 336(2)


Commitment of fraud provided fraud in question involves public interest

Any person found guilty of such fraud

Section 447


Intentionally giving false evidence upon any examination on oath or solemn affirmation, authorised under the Companies Act, 2013

Any person giving such false evidence



Intentionally giving false evidence in any affidavit, deposition or solemn affirmation, in or about the winding up of any company under the Companies Act, 2013, or otherwise in or about any matter arising under the Companies Act, 2013





Great read.
Posted 11 months ago  |  0

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