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Section 449: Punishment for false evidence

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Act 2013
Section 448 All 470 Sections of Companies Act Section 450
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Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 449

Section 449 criminalizes the giving of false evidence in corporate proceedings, prescribing rigorous imprisonment extending from three to seven years and fines up to ten lakh rupees for intentionally giving false evidence on oath or in affidavits before the Tribunal, Court, or inspecting officers.

  • Intentional False Evidence on Oath: Punishes intentionally giving false evidence upon examination on oath or solemn affirmation before the NCLT, NCLAT, or inspecting authorities.
  • Perjury in Sworn Affidavits and Depositions: Criminalizes submitting affidavits, declarations, or verified pleadings containing deliberately perjured or fabricated facts.
  • Severe Penal Consequences: Imposes mandatory imprisonment for a term which shall not be less than three years but which may extend to seven years, along with fine up to ten lakh rupees.
Key Landmark Precedents:
  • Chajoo Ram v. Radhey Shyam (1971) 1 SCC 774: Supreme Court established that perjury prosecution should be initiated only when deliberately false statements affect the administration of justice.
  • K.T.M.S. Mohd. v. Union of India (1992) 3 SCC 178: Supreme Court held that false statements made in statutory proceedings under economic and corporate laws attract criminal liability for perjury.
  • Iqbal Singh Marwah v. Meenakshi Marwah (2005) 4 SCC 370: Constitution Bench established the procedural framework under Section 195/340 CrPC for prosecuting false evidence fabricated in court proceedings.
Courtroom Practice & Strategic Litigation Guidance:

In commercial litigation before the NCLT, if an adversary submits a demonstrably forged board resolution or perjured affidavit, immediately file an application under Section 340 CrPC read with Section 449 to initiate criminal prosecution.

Section 448 All 470 Sections of Companies Act Section 450