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.
Legal Commentary & Landmark Judgments: Section 251
Section 251 of the Companies Act, 2013 establishes severe civil and criminal consequences for making a fraudulent application for removal of name under Section 248, imposing unlimited joint and several personal liability on managing persons and mandating criminal prosecution under Section 447.
When representing a defrauded creditor whose debtor company dissolved via Form STK-2, obtain the indemnity bonds and affidavits filed by directors from MCA records. File a composite proceeding before the Special Court under Section 251/447 and petition the NCLT under Section 252(3) for simultaneous company revival and personal asset freezing.