Section 452 Punishment for wrongful withholding of property
- Chapter
- XXIX · Miscellaneous
- Amendments
- 1
- Last changed
- 2 November 2018
452. Punishment for wrongful withholding of property.—
(1) If any officer or employee of a company—
(a) wrongfully obtains possession of any property, including cash of the company; or
(b) having any such property including cash in his possession, wrongfully withholds it or knowingly applies it for the purposes other than those expressed or directed in the articles and authorised by this Act,3 he shall, on the complaint of the company or of any memberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. or creditor or contributory thereof, be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.
(2) The Court trying an offence under sub-section (1) may also order such officer or employee to deliver up or refund, within a time to be fixed by it, any such property or cash wrongfully obtained or wrongfully withheld or knowingly misapplied, the benefits that have been derived from such property or cash or in default, to undergo imprisonment for a term which may extend to two years.
Substituted by Companies (Amendment) Act, 2019, s. 42, with effect from 2 November 2018. Earlier read: "sub-section (3)"Provided that the imprisonment of such officer or employee, as the case may be, shall not be ordered for wrongful possession or withholding of a dwelling unit, if the court is satisfied that the company has not paid to that officer or employee, as the case may be, any amount relating to--
Substituted by Companies (Amendment) Act, 2019, s. 42, with effect from 2 November 2018. Earlier read: "sub-section (3)"(a) provident fund, pension fund, gratuity fund or any other fund for the welfare of its officers or employees, maintained by the company;
Substituted by Companies (Amendment) Act, 2019, s. 42, with effect from 2 November 2018. Earlier read: "sub-section (3)"(b) compensation or liability for compensation under the Workmen's Compensation Act, 1923 (19 of 1923) in respect of death or disablement.