Section 400 — Penalty for fraud by officers of companies which have gone into liquidation

(1) If any person, being at the time of the commission of the alleged
offence an officer of a company which is subsequently ordered to be wound up by
the Court or which subsequently passes a resolution for voluntary winding up—

(a) has, by false pretenses or by means of any other fraud, induced any
person to give credit to the company; or

(b) with intent to defraud creditors of the company, has made or caused
to be made any gift or transfer of or charge on, or has caused or
connived at the levying of any execution against, the property of the
company; or

(c) with intent to defraud creditors of the company, has concealed or
removed any part of the property of the company since, or within
sixty days before, the date of any unsatisfied judgment or order for
payment of money obtained against the company;

he shall be punishable with imprisonment for a term which may extend to three
years, and shall also be liable to a fine which may extend to one million rupees.
(2) Where the Court has passed an order of winding up of a company
and prima facie concludes that any of the offence provided in sub -section (1) has
been committed, the Court may send a reference for adjudication of offence under
sub-section (1) to the court as provided under section 482.