Application of sections 34 to 36 and Chapter XX
Section 391 of the Companies Act, 2013 deals with application of sections 34 to 36 and Chapter XX. The provisions of sections 34 to 36 (both inclusive) shall apply to-- (i) the issue of a prospectus by a company incorporated outside India under section 389 as they apply to prospectus issued by an Indian company; The Act came into force on 01 Apr 2014.
(1) The provisions of sections 34 to 36 (both inclusive) shall apply to--
(i) the issue of a prospectus by a company incorporated outside India under section 389 as they apply to prospectus issued by an Indian company;
(ii) the issue of Indian Depository Receipts by a foreign company.
1[(2) Subject to the provisions of section 376, the provisions of Chapter XX shall apply mutatis mutandis for closure of the place of business of a foreign company in India as if it were a company incorporated in India in case such foreign company has raised monies through offer or issue of securities under this Chapter which have not been repaid or redeemed.]
Section 391, 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.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… He submitted that the guarantor's liability is separate and distinct from the principal debtor as held by this Court in the case of Punjab National Bank Ltd. v. Shri Vikram Cotton Mills & Anr.[13]( page-9-0) This Court held that a binding obligation created under a composition under Section 391 of the Companies Act, 1956, between the company and its creditors, did not affect the liability of surety. He submitted that any variation in the contract between the creditor and guarantor does not discharge the principal debtor. If there is a variance made without the guarantor's consent in the contract between …
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… (ii)... 3… 4…" 8. The appellants have relied on Hindustan Lever v. State of Maharashtra , (2004) 9 SCC 438 , and would submit that Form No.5 is an instrument. In this case, the question whether an order passed by the Court (under Section 394 read with Section 391 of the Companies Act), sanctioning a scheme of amalgamation of two companies is an instrument within the meaning of Section 2(l) of the Stamp Act, was answered in the affirmative. It was observed that the Court passes the order of sanction based on the arrangement arrived at between the parties and thereby …
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… Xxx xxx xxx 83. For the reasons aforesaid, this Court is unable to accept the contentions of the learned counsel for the appellant(s) that as a result of sanction of a scheme under Section 391 of the Companies Act there is an automatic compounding of offences under Section 138 of the NI Act even without the consent of the complainant." (Emphasis supplied) 81. In Indorama Synthetics (I) Ltd., Nagpur v. State of Maharashtra and others reported in 2016 SCC OnLine Bom 2611, the question that arose …
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 391
What does Section 391 of the Companies Act deal with?
Section 391 of the Companies Act is headed "Application of sections 34 to 36 and Chapter XX". The provisions of sections 34 to 36 (both inclusive) shall apply to-- (i) the issue of a prospectus by a company incorporated outside India under section 389 as they apply to prospectus issued by an Indian company;
How do I find court cases under Section 391 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 391, section 391 Companies Act, section 391 of the Companies Act. People searching for it also type companies act section 391 to 394 and companies act 1956 section 391. 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 391 of the Companies Act, and has it changed?
Its own text turns on section 34 (Criminal liability for mis-statements in prospectus), section 36 (Punishment for fraudulently inducing persons to invest money), section 376 (Power to wind up foreign companies although dissolved), section 389 (Registration of prospectus), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. 2 instruments name it without being made under it, most recently Section 391(2) closure of place of business by a Foreign Company (2017), then Commencement notification dated 07.12.2016 (2016).
When did Section 391 of the Companies Act come into force?
Section 391 of the Companies Act, cited as Companies Act 391, 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.