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Section 284: Promoters, directors, etc., to cooperate with Company Liquidator

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Section 283 All 470 Sections of Companies Act Section 285
Statutory Defined Terms in this Section: (Click any term for official legal definition)
Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 284

Section 284 of the Companies Act, 2013 imposes an affirmative statutory duty on promoters, directors, officers, and employees (past and present) to cooperate fully with the Company Liquidator, backing the requirement with severe civil prison detention and monetary penalties.

  • Mandatory Cooperation Obligation: Promoters, current and past directors, officers, and employees of the company are legally bound to extend complete cooperation and assistance to the Company Liquidator in the discharge of statutory duties.
  • Summary Recourse to Tribunal: Where any person fails to assist or cooperate without reasonable cause, the liquidator is empowered to apply directly to the Tribunal for coercive directions.
  • Penal Sanctions and Civil Imprisonment: The Tribunal may, upon finding deliberate non-cooperation or obstruction, direct compliance and order the detention of the contemnor in civil prison for up to six months, impose a fine up to fifty thousand rupees, or both.
Key Landmark Precedents:
  • Vijay Kumar Jain v. Standard Chartered Bank, (2019) 20 SCC 455: The Supreme Court observed that former directors and management personnel have an inescapable duty to supply all information, records, and access to court-appointed insolvency administrators to preserve corporate value.
  • K.T. Chandy v. Mansoor, (1993) 76 Comp Cas 125 (Ker): The High Court held that refusal or intentional delay by ex-directors in handing over corporate papers, accounts, and keys to the liquidator constitutes deliberate contempt and statutory defiance punishable with civil detention.
Courtroom Practice & Strategic Litigation Guidance:

Liquidators facing stone-walling by erstwhile promoters should issue a detailed requisition letter specifying each document and physical asset required, fixing a clear seven-day deadline. Upon failure, an application under Section 284 before the NCLT must be filed, seeking warrant for civil arrest and seizure of records via local commissioners.

Section 283 All 470 Sections of Companies Act Section 285