Section 249: Restrictions on making application under section 248 in certain situations
This section is for restricting companies from making an application to be removed from the register of companies in certain situations.
Penalty
(2) If a company files an application under sub-section (2) of section 248 in violation of sub-section (1), it shall be punishable with fine which may extend to one lakh rupees.
The section, clause by clause
What the section says
In plain terms
(1)An application under sub-section (2) of section 248 on behalf of a company shall not be made if, at any time in the previous three months, the company—
A company cannot make an application under section 248 if in the previous three months it has changed its name, shifted its registered office, disposed of property, engaged in other activities, made an application for compromise, or is being wound up.
(1)(a)has changed its name or shifted its registered office from one State to another;
(1)(b)has made a disposal for value of property or rights held by it, immediately before cesser of trade or otherwise carrying on of business, for the purpose of disposal for gain in the normal course of trading or otherwise carrying on of business;
(1)(c)has engaged in any other activity except the one which is necessary or expedient for the purpose of making an application under that section, or deciding whether to do so or concluding the affairs of the company, or complying with any statutory requirement;
(1)(d)has made an application to the Tribunal for the sanctioning of a compromise or arrangement and the matter has not been finally concluded; or 1[(e) is being wound up under Chapter XX of this Act or under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).]
(2)If a company files an application under sub-section (2) of section 248 in violation of sub-section (1), it shall be punishable with fine which may extend to one lakh rupees.
If a company makes an application under section 248 despite the restrictions, it will be punishable with a fine of up to one lakh rupees.
(3)An application filed under sub-section (2) of section 248 shall be withdrawn by the company or rejected by the Registrar as soon as conditions under sub-section (1) are brought to his notice.
An application under section 248 must be withdrawn or rejected if the conditions restricting the application are met.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for clause (e) (w.e.f. 15-11-2016).
This section refers to
Search the whole Act, or ask it a question, in the interactive browser.
Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.