Power of court to grant relief in certain cases
Section 463 of the Companies Act, 2013 deals with power of court to grant relief in certain cases. If in any proceeding for negligence, default, breach of duty, misfeasance or breach of trust against an officer of a company, it appears to the court hearing the case that he is or may be liable in respect of the negligence, default, breach of duty, misfeasance or breach of trust, but that he has ac The Act came into force on 01 Apr 2014.
(1) If in any proceeding for negligence, default, breach of duty, misfeasance or breach of trust against an officer of a company, it appears to the court hearing the case that he is or may be liable in respect of the negligence, default, breach of duty, misfeasance or breach of trust, but that he has acted honestly and reasonably, and that having regard to all the circumstances of the case, including those connected with his appointment, he ought fairly to be excused, the court may relieve him, either wholly or partly, from his liability on such term, as it may think fit:
Provided that in a criminal proceeding under this sub-section, the court shall have no power to grant relief from any civil liability which may attach to an officer in respect of such negligence, default, breach of duty, misfeasance or breach of trust.
(2) Where any such officer has reason to apprehend that any proceeding will or might be brought against him in respect of any negligence, default, breach of duty, misfeasance or breach of trust, he may apply to the High Court for relief and the High Court on such application shall have the same power to relieve him as it would have had if it had been a court before which a proceedings against that officer for negligence, default, breach of duty, misfeasance or breach of trust had been brought under sub-section (1).
(3) No court shall grant any relief to any officer under sub-section (1) or sub-section (2) unless it has, by notice served in the manner specified by it, required the Registrar and such other person, if any, as it thinks necessary, to show cause why such relief should not be granted.
Section 463, The Companies Act, 2013 (Act 18 of 2013).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Eshwar Karra vs The Registrar of Companies
Court's Decision & Legal Precedent
On petitions under Section 463 of the Companies Act, 2013 read with Section 633 of the 1956 Act, the Court accepted the Registrar's own position that nominee directors of an investor are not 'officers in default' and so are not liable to prosecution for the company's failure to file documents, and directed the Registrar to delete their names from the List of Defaulting Directors on the MCA records and website.
On this section: Applies Section 463 to relieve a nominee director of all liabilities incurred by reason of having acted as director, and treats publication as a defaulting director without a hearing as a consequence from which relief under the section may be moulded.
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Vivek Joshi vs The Registrar of Companies
Court's Decision & Legal Precedent
By the same common order disposing of Company Petitions 97 and 119 of 2015, the petitioner in C.P. No.119 of 2015 was expressly 'relieved from all liabilities for having acted as a Director' of the company in accordance with Section 463 of the Companies Act, 2013, the Court holding that a nominee director is not liable to be prosecuted for the company's filing defaults.
On this section: Shows the operative form of Section 463 relief: an order relieving the officer of all liability for having acted as director, coupled with a direction to remove his name from the Registrar's list of defaulting directors.
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Satish Batra, ANR vs Registrar of Companies, Anr.
Court's Decision & Legal Precedent
Relief excusing a director from statutory liability is available only where he shows he acted honestly and reasonably; the Court refused to excuse directors who had accepted share application money without any Board resolution authorising an allotment and had misdescribed it in the balance sheet, and dismissed the petition for excusal from liability for the resulting defaults.
On this section: Decided under Section 633 of the Companies Act, 1956, the predecessor of Section 463, it sets the standard the officer must meet under this section: honest and reasonable conduct judged against the Board authorisation and disclosure requirements he was bound to observe.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
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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… A glance of the contents of an affidavit in C.A.No.1072 of 2013 in C.P.No.297 of 2013 filed by the Appellant, as Applicant, shows that the Appellant took a plea that upon notification of Section 463 of the Companies Act, 2013, the provisions of Section 633 have ceased to operate from 12.09.2013 and no relief could be sought for from this Court on or after 12.09.2013 under the Provisions of Section 633 of the Companies Act, 1956. Furthermore, according to the Appellant, the provisions of Section 633(1) and …
Questions about Section 463
What have the courts held on Section 463 of the Companies Act?
Eshwar Karra vs The Registrar of Companies (24 Jan 2017) is the leading judgment on this section among those set out below: Applies Section 463 to relieve a nominee director of all liabilities incurred by reason of having acted as director, and treats publication as a defaulting director without a hearing as a consequence from which relief under the section may be moulded. Another 2 judgments on this section are set out below. They run from 2007 to 2017.
How do I find court cases under Section 463 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 463, section 463 Companies Act, section 463 of the Companies Act. People searching for it also type companies act 2006 section 463. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Eshwar Karra vs The Registrar of Companies (24 Jan 2017).
When did Section 463 of the Companies Act come into force?
Section 463 of the Companies Act, cited as Companies Act 463, 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.