[Section 337 to the extent its applicability for section 246 made effective from 09.09.2016]; [ Section 337 notified with effect from 15.12.2016 vide S.O. 3676 (E) dated 07.12.2016]
Section 337- Penalty for frauds by officers. [Corresponds to Section 540 of the Companies Act, 1956]
If any person, being at the time of the commission of the alleged offence an officer of a company which is subsequently ordered to be wound up by the Tribunal [ under this Act ] - [ The word " under this Act" sustituted for the words " which subsequently passes a resolution for voluntary winding up" vide Notification 37 dated 28.05.2016 (Insolvency and Bankruptcy Code, 2016) read with MCA Notification S.O.3453 (E) dated 15.11.2016]
(a) has, by false pretences or by means of any other fraud, induced any person to give credit to the company;
(b) with intent to defraud creditors of the company or any other person, has made or caused to be made any gift or transfer of, or charge on, or has caused or connived at the levying of any execution against, the property of the company; or
(c) with intent to defraud creditors of the company, has concealed or removed any part of the property of the company since the date of any unsatisfied judgement or order for payment of money obtained against the company or within two months before that date,
he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees.