"Tech Growth Pvt. Ltd." is undergoing liquidation by the NCLT. A forensic audit reveals that Mr. Sharma, a director and major shareholder (contributory), has transferred ₹5 crores of company funds to his personal offshor

Section 301 of the Companies Act, 2013 empowers the National Company Law Tribunal (NCLT) to order the arrest of a person who is trying to leave India or abscond to evade payment of dues (calls) or avoid examination during the winding up of a company. The Tribunal, if satisfied that a contributory or a person having property, accounts or papers of the company in his possession is about to leave India or otherwise to abscond, or is about to remove or conceal any of his property, for the purpose of evading payment of calls or of avoiding examination respecting the affairs of the company, the tribunal may cause (a) the contributory (Mr. Sharma in the given case) to be detained until such time as the tribunal may order; and (b) his books and papers and movable property to be seized and safely kept until such time as the tribunal may think fit.