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TMI Blog2020 (2) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... ll apply mutatis mutandis - Section 337 refers to penalty for frauds by an officer of the company in which mis-management has taken place. Likewise, Section 339 refers to any business of the company which has been carried on with intent to defraud creditors of that company. Obviously, the persons referred to in Section 339(1) as persons who are other than the parties to the carrying on of the business in the manner aforesaid which again refers to the business of the company which is being mismanaged and not to the business of another company or other persons. This being the case, it is clear that powers under these sections cannot possibly be utilized in order that a person who may be the head of some other organization be roped in, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n pointed out orders that were passed by the NCLT in exercise of its jurisdiction under Section 241 of the Companies Act by which certain named individuals were injuncted from disposing movable and immovable properties/assets which belong to them and whose assets were frozen, making it clear that post-freeze only a sum of ₹ 1,00,000/- per month will be allowed to each of such persons for personal expenses. He further argued that in exercising powers under Section 241, powers may be exercised under various provisions of the Companies Act including Section 337 and 339 only insofar as the mis-management of that very Company is concerned, which is obviously not relatable to any other corporate body, including the Punjab National Bank, of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany or class of companies, as may be prescribed, shall be made before the Principal Bench of the Tribunal which shall be dealt with by such Bench. 337. Penalty for frauds by officers.- 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. - (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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal makes any such declaration, it may give such further directions as it thinks proper for the purpose of giving effect to that declaration and, in particular,- (a) make provision for making the liability of any such person under the declaration a charge on any debt or obligation due from the company to him, or on any mortgage or charge or any interest in any mortgage or charge on any assets of the company held by or vested in him, or any person on his behalf, or any person claiming as assignee from or through the person liable or any person acting on his behalf; (b) make such further order as may be necessary for the purpose of enforcing any charge imposed under this sub-section. (3) Where any business of a company is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wers under Section 337 and 339 are also given in aid of this power, which will apply mutatis mutandis. 7) Section 337 refers to penalty for frauds by an officer of the company in which mis-management has taken place. Likewise, Section 339 refers to any business of the company which has been carried on with intent to defraud creditors of that company. Obviously, the persons referred to in Section 339(1) as persons who are other than the parties to the carrying on of the business in the manner aforesaid which again refers to the business of the company which is being mismanaged and not to the business of another company or other persons. 8) This being the case, it is clear that powers under these sections cannot possibly be utilized ..... X X X X Extracts X X X X X X X X Extracts X X X X
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