Section 449 of the Companies Act, 2013 provides for punishment for false evidence if it is furnished before the Registrar or any other authority or person appointed under the Companies Act.
According to Section 449, if any person furnishes forged, false or incorrect evidence in a document filed, delivered or signed by him, with the Registrar or any other authority or any person appointed under the Companies Act, he shall be punishable with a fine not exceeding one hundred thousand rupees or with imprisonment up to 6 months, or both.
Furnishing of false evidence is a serious offence and is punishable under Section 449 of the Companies Act, 2013. The provisions of this section are meant to serve as an effective deterrent against people who resort to fraudulent or dishonest practices in the business environment.
The purpose of this legislation is to ensure that the companies doing business in India adhere to the laws, regulations, and ethical practices laid down by the government and the Companies Act, 2013. It is to ensure that the companies follow the legal provisions laid down and are not indulged in any unethical or fraudulent practices.
The punishment provided under Section 449 of the Companies Act, 2013 is severe and is also meant to discourage individuals from committing this offence. The provision also stipulates that the offender is liable to pay a fine of Rs. 100000 or be imprisoned for a maximum of six months or both.
This section imposes a specific legal liability upon those individuals who provide false evidence. This ensures that no witness can lie or provide false evidence during court proceedings. Thus, this provision protects the sanctity of the court proceedings and serves as a deterrent against any individual planning to provide false evidence before an authority or a person appointed under the Companies Act, 2013.
The provision of Section 449 further clarifies that the punishment provided will be applicable to false or incorrect evidences furnished before any authority or persons appointed under the Companies Act. It means that if a person provides false or incorrect evidence in favour of any company or in any other capacity, he shall be held guilty and punishable with the fine or imprisonment as stipulated in this section.
The penalty imposed by Section 449 of the Companies Act, 2013 is heavy and it also serves as a deterrent against any person or firm trying to resort to unlawful activities or providing false evidences in order to gain any benefits or unfair advantages.
Besides this, the provision also serves as an effective tool to check on the mismanagement of funds and transactions within the purview of the Companies Act, 2013. It helps to ensure that the transactions and dealings of companies remain within the norms of law and they do not take advantage of anyone while carrying out their business activities.
The Companies Act, 2013 is one of the most important pieces of legislations that is meant to provide a framework for the governance of companies in India.
Therefore, Section 449 of the Companies Act, 2013 provides for a strict punishment for false evidence and it helps to preserve the sanctity of the court proceedings and discourages individuals from committing this offence. It is to ensure that companies adhere to the laws and the ethical practices laid down by the government and the Companies Act, 2013.
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Disclaimer: “Neither this article nor the information contained herein shall in any way be construed as forming a contract or shall constitute professional advice required before acting upon any matter. CA Sharad Kumar Sharma has taken all due care in the preparation of this article for accuracy in its contents at the time of publication. However, no liability shall be accepted by him in the event of any direct, indirect or consequential damages arising out of or in any way connected with the use of this article or its contents. “
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well explained !