{"id":82278,"date":"2023-12-04T16:43:44","date_gmt":"2023-12-04T11:13:44","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?post_type=act&#038;p=82278"},"modified":"2023-12-04T16:47:32","modified_gmt":"2023-12-04T11:17:32","slug":"section-447","status":"publish","type":"act","link":"https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-447\/","title":{"rendered":"Section 447. Punishment For Fraud"},"content":{"rendered":"\n<p>Without prejudice to any liability including repayment of any debt under this Actor any other law for the time being in force, any person who is found to be guilty of fraud,&nbsp;<span id='easy-footnote-1-82278' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-447\/#easy-footnote-bottom-1-82278' title='Ins. by Act 1 of 2018, s. 92 (w.e.f. 9-2-2018).'><sup>1<\/sup><\/a><\/span>[involving an amount of at least ten lakh rupees or one per cent. of the turnover of the company, whichever is lower] shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to ten years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud:<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Provided that where the fraud in question involves public interest, the term of imprisonment shall not be less than three years.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><span id='easy-footnote-2-82278' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-447\/#easy-footnote-bottom-2-82278' title='The proviso ins. by s. 92, ibid. (w.e.f. 9-2-2018).'><sup>2<\/sup><\/a><\/span>[Provided further that where the fraud involves an amount less than ten lakh rupees or one per cent. of the turnover of the company, whichever is lower, and does not involve public interest, any person guilty of such fraud shall be punishable with imprisonment for a term which may extend to five years or with fine which may extend to&nbsp;<span id='easy-footnote-3-82278' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-447\/#easy-footnote-bottom-3-82278' title='Subs. by Act 22 of 2019, s. 41, for &amp;#8220;twenty lakh rupees&amp;#8221; (w.e.f. 2-11-2018).'><sup>3<\/sup><\/a><\/span>[fifty lakh rupees] or with both.]<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em>Explanation.<\/em>&#8212; For the purposes of this section&#8211;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(i) &#8220;fraud&#8221;, in relation to affairs of a company or any body corporate, includes any act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(ii) &#8220;wrongful gain&#8221; means the gain by unlawful means of property to which the person gaining is not legally entitled;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(iii) &#8220;wrongful loss&#8221; means the loss by unlawful means of property to which the person losing is legally entitled.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Without prejudice to any liability including repayment of any debt under this Actor any other law for the time being in force, any person who is found to be guilty of fraud,&nbsp;[involving an amount of at least ten lakh rupees or one per cent. of the turnover of the company, whichever is lower] shall be [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":79763,"parent":79755,"menu_order":0,"template":"","format":"standard","meta":[],"categories":[11445],"tags":[1007],"acf":{"service_id":"0"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Section 447. 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