Section 251: Fraudulent application for removal of name
This section is for punishing and holding liable those who make fraudulent applications to remove a company's name.
The section, clause by clause
What the section says
In plain terms
(1)Where it is found that an application by a company under sub-section (2) of section 248 has been made with the object of evading the liabilities of the company or with the intention to deceive the creditors or to defraud any other persons, the persons in charge of the management of the company shall, notwithstanding that the company has been notified as dissolved—
If a company's application to remove its name has been made to evade liabilities, deceive creditors, or defraud others, the company's management will be liable for losses incurred and punishable for fraud.
(1)(a)be jointly and severally liable to any person or persons who had incurred loss or damage as a result of the company being notified as dissolved; and
(1)(b)be punishable for fraud in the manner as provided in section 447.
(2)Without prejudice to the provisions contained in sub-section (1), the Registrar may also recommend prosecution of the persons responsible for the filing of an application under sub-section (2) of section 248.
The Registrar can also suggest prosecuting those responsible for filing such an application.
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.
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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.