Section 301: Arrest of person trying to leave India or abscond
This section allows the Tribunal to arrest and detain a person who is trying to leave India or hide assets to avoid paying debts or being questioned about a company's affairs.
The section, clause by clause
What the section says
In plain terms
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.
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 29 of 2020, s. 47, for sub-section (3) (w.e.f. 21-212020).
- 2. Sub-section (4) omitted by s. 47, ibid. (w.e.f. 21-12-2020).
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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.