Section 344: Statement that company is in liquidation

Companies Act, 2013 · Chapter XX: Winding Up · In force

This section requires companies in liquidation to clearly indicate their status on official documents and imposes a fine for non-compliance.

Penalty

(2) If a company contravenes the provisions of sub-section (1), the company, and every officer of the company, the Company Liquidator and any receiver or manager, who wilfully authorises or permits the non-compliance, shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees.

The section, clause by clause

What the section says

In plain terms

(1)Where a company is being wound up, whether by the Tribunal or voluntarily, every invoice, order for goods or business letter issued by or on behalf of the company or a Company Liquidator of the company, or a receiver or manager of the property of the company, being a document on or in which the name of the company appears, shall contain a statement that the company is being wound up.

When a company is being wound up, every invoice or business letter that includes the company's name must state that the company is being wound up.

(2)If a company contravenes the provisions of sub-section (1), the company, and every officer of the company, the Company Liquidator and any receiver or manager, who wilfully authorises or permits the non-compliance, shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees.

If a company fails to include this statement, it and its officers, liquidator, or receiver can be fined at least 50,000 rupees but no more than 3 lakh rupees.

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. Sub-sections (2), (3) and (4) omitted by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016).
2. Sub-section (6) omitted by Act 29 of 2020, s. 48 (w.e.f. 21-12-2020).
3. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for sub-section (1) (w.e.f. 15-11-2016).

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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.