Section 341 of CA 2013 : Section 341: Liability Under Sections 339 And 340 To Extend To Partners Or Directors In Firms Or Companies

Explanation using Example

Imagine a scenario where a company, XYZ Pvt. Ltd., is undergoing liquidation proceedings. The Tribunal has already made a declaration under section 339 that fraudulent transactions were carried out by the company. Now, it is discovered that a director of XYZ Pvt. Ltd., Mr. John, was also a partner in another firm, ABC & Co., which was involved in those fraudulent transactions.

Under Section 341 of the Companies Act, 2013, the Tribunal has the authority to extend its declaration to Mr. John, even though the initial declaration was against XYZ Pvt. Ltd. Consequently, the Tribunal can declare that Mr. John, in his capacity as a partner of ABC & Co., was also involved in the fraudulent activities, and can pass orders accordingly.