Write short notes on: Disgorgement

Under the Companies Act, 2013, in case of fraud, undue advantage or benefit, the Central Government may file an application before the Tribunal for appropriate orders with regard to disgorgement of such assets, property, or cash. The Central Government may also file and application before the Tribunal for holding directors, key managerial personnel, officers or other person personally liable without any limitation of liability. Disgorgement is the act of giving up something such as the profits obtained by illegal or unethical acts on demand or by legal compulsion. Court can order wrongdoers to pay back to prevent unjust enrichment. Disgorgement is a civil remedy and not a punishment or punitive civil action. The purpose of such a remedy, as in securities cases, is to deprive the wrongdoer of his or her ill-gotten gains and to deter violations of the law.