Missed filing your ITR?

You can still file it on Cleartax in just minutes

Winding Up of a Company

Updated on: Jul 21st, 2021


6 min read

social iconssocial iconssocial iconssocial icons

The scope of Company Law in India is wide, it takes into account the nitty-gritties of winding up of a company and liquidation of its assets. While winding up of a company if its agents fail to comply with the rules and regulation they can be held civilly or criminally liable. You can also check out the penalties for mismanagement, misrepresentation and fraud.  

1)Sec 284 – Failure by the Promoters, directors, etc., to cooperate with Company LiquidatorAny person Max: INR 50 thousand orMax: 6 months OR Both
2)Sec 302 – Company Liquidator makes a default in forwarding a copy of the order within 30 days from the date thereofCompany liquidatorINR 5000 thousand for every day of defaultArrest of person trying to leave India
3)Sec 305 – Making a declaration of solvency without having reasonable grounds for the opinion that the company will be able to pay its debts in full from the proceeds of assets sold in voluntary winding upDirectorMin: INR 50 thousand Max: INR 3 Lakhs ORMax: 3 years OR Both
4)Sec 306 – Failure to call the meeting of creditors and conduct the meeting according to the provisionsCompany Director in defaultMin: INR 50 thousand Max: INR 2 Lakhs Min: INR 50 thousand Max: INR 2 Lakh ORMax: 6 months OR Both
5)Sec 307- Failure to publish notice of the resolution of voluntary winding up, by advertisement in official gazette and newspaperCompany and every officer in defaultINR 5 thousand for every day of default 
6)Sec 312- Failure to provide notice to the registrar of appointment/vacancy of Company Liquidator within 10 days of appointment/vacancyCompany and every officer in defaultINR 5 hundred for every day of default 
7)Sec 314- Failure to prepare a quarterly statement of accounts in such form and manner as may be prescribed and file such statement of accounts duly audited within thirty days from the close of each quarter with the Registrar Contravention of other provisions other than one mentioned aboveCompany Liquidator Company LiquidatorINR 5 thousand for every day of default Max:  INR 10 lakh 
8)Sec 316 – Failure by the Company Liquidator to submit a report on the progress of winding upCompany LiquidatorMax:  INR 10 lakh 
9)Sec 318 – Failure to comply with the provisions related to final meeting and dissolution of company.Company LiquidatorMax:  INR 1 lakh 
10)Sec 336 – Officer guilty of any false representation or fraud for the purpose of obtaining the consent of the creditors of the company or any of them, to an agreement with reference to the affairs of the company or to the winding up Every person who takes in pawn or pledge or otherwise receives the property, knowing it to be pawned, pledged, or disposed of in such circumstancesOfficer Every officer Min: INR 1 Lakh Max: INR 3 Lakhs & Min: INR 3 Lakhs Max: INR 5 Lakhs &Min: 3 years Max: 5 years Min: 3 years Max: 5 years
12)Sec 337- Penalty for frauds by officers when the company is ordered to be wound up by tribunal or resolution for voluntary winding up is passedOfficerMin: INR 1 Lakh Max: INR 3 Lakhs &Min: 1 year Max: 3 year
13)Sec 338 – Liability where proper accounts not kept.Officer in defaultMin: INR 1 Lakh Max: INR 3 Lakhs &Min: 1 year Max: 3 year
14)Sec 339 – Business of the company has been carried on with intent to defraud creditors of the company or any other persons or for any fraudulent purposeEvery person knowingly a part of itMin: Amount involved in the fraud Max:3 times the amount involved &Min:6 Months Max:10 Years *Fraud involving public interest: Min: 3 years
15)Sec 342 – Failure to give assistance in connection with the prosecutionOfficer/Agent of the companyMin: INR 25 thousand Max: INR 1 Lakh 
16)Sec 344-Failure to publish a statement that the company is being wound up in every document issued by or on behalf of the company.Company Every officer Company liquidator Receiver ManagerMin: INR 50 thousand Max: INR 3 Lakhs 
17)Sec 347 – Contravening the orders of the central government as regards disposal of books and papers of the company and making of representationsAny person in defaultMax: INR 50 thousand ORMax: 6 months OR Both
18)Sec 348-Statement containing information as to pending liquidations audited by a person not qualified to act as an auditor of the company Non- Compliance with providing information as to pending litigationsCompany Liquidator Company LiquidatorMax: INR 1 Lakh or INR 5 thousand for every day of defaultMax: 6 months OR Both
19)Sec 356 – Failure to file a Certified copy as regards dissolution declared void, to the registrar within 30 days/such time as permitted by the tribunalCompany Liquidator or the person on whose application the order was madeINR 10 thousand for every day of default 

inline CTA
File your returns in just 3 minutes
100% pre-fill. No manual data entry

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use


ISO 27001

Data Center


SSL Certified Site

128-bit encryption