Fraudulent application for removal of name
Section 251 of the Companies Act, 2013 deals with fraudulent application for removal of name. 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 The Act came into force on 01 Apr 2014.
(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--
(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
(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.
Section 251, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
Questions about Section 251
What does Section 251 of the Companies Act deal with?
Section 251 of the Companies Act is headed "Fraudulent application for removal of name". 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
How do I find court cases under Section 251 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 251, section 251 Companies Act, section 251 of the Companies Act. People searching for it also type companies act 2006 section 251. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 251 of the Companies Act, and has it changed?
Its own text turns on section 248 (Power of Registrar to remove name of company from register of companies), section 447 (Punishment for fraud), so none of them can safely be read on its own. 2 instruments name it without being made under it, most recently G.S.R 298(E) Companies Removal of Names of Companies from the Register of Companies Amendment Rules 2023 dated 17.04.2023 (2023), then Companies (Removal of names of companies from the Register of Companies) Rules 2016 (2016).
When did Section 251 of the Companies Act come into force?
Section 251 of the Companies Act, cited as Companies Act 251, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.