Companies Act Section 301 — Arrest of person trying to leave India or abscond

CHAPTER XX WINDING UP

Commercial / Corporate

Summary

At any time, whether before or after the court has passed an order to wind up the company, the Tribunal can act if it is satisfied that a contributory (a person liable to contribute to the company's assets) or someone who holds the company's property, accounts, or papers is about to leave India or run away, or is about to remove or hide any of their property. The Tribunal must believe this is being done to avoid paying calls (money owed on shares) or to avoid being examined about the company's affairs.

Under clause (a), the Tribunal may order that the contributory be detained for as long as the Tribunal decides.

Under clause (b), the Tribunal may also order that the person's books, papers, and movable property be seized and kept safely for as long as the Tribunal decides.

Official Text

At any time either before or after passing a winding up order, if the Tribunal is satisfied that a contributory or a person having property, accounts or papers of the company in his possession is about to leave India or otherwise to abscond, or is about to remove or conceal any of his property, for the purpose of evading payment of calls or of avoiding examination respecting the affairs of the company, the Tribunal may cause—

(a) the contributory to be detained until such time as the Tribunal may order; and

(b) his books and papers and movable property to be seized and safely kept until such time as the Tribunal may order.