Charlie obtained travel advance amounting to ₹1,80,000 in ₹1,000 denomination on 7th November, 2016 based on the signature of the Managing Director of the company on the travel advance voucher. During the period of demon

Section 452 of the Companies Act, 2013 states that, if any officer or employee of a company wrongfully obtains possession of any property including cash or having such property wrongfully withholds it or knowingly applies it for the purpose other than expressed or directed in the articles and authorised by this Act, then he shall, on the complaint of the company or any member or creditor or contributory thereof, be punishable with fine of not less than rupees one lakh but it may extend to rupees five lakh. The expression 'wrongfully' would mean that a person continues to remain in possession or hold the property otherwise than in due course of law. [B. R. Herman & Mohatta India Ltd. v. Ashok Rai (1948) 55 Compo Cas. 61 (Delhi)]. Hence, it may be concluded that Charlie, by depositing the demonetized currency notes into his wife's account instead of refunding it to the company, has violated provisions of section 452 and action can be taken on the basis of complaint of company or of any member or creditor or contributory thereof, filed against him. Alternate Answer The act of Charlie is also covered under Sections 447 & 448 of the Companies Act, 2013 on the grounds mentioned under these sections, which provide as under: Fraud in relation to affairs of a company or any body corporate, includes any act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss; 'wrongful gain' means the gain by unlawful means of property to which the person gaining is not legally entitled; Section 448 of the Companies Act, 2013 provides that if in any return, report, certificate, financial statement, prospectus, statement or other document required by, or for, the purposes of any of the provisions of this Act or the rules made thereunder, any person makes a statement: which is false in any material particulars, knowing it to be false; or which omits any material fact, knowing it to be material. Accordingly, Charlie having made a false statement in his report to the company to conceal the fact about the demonetized currency of the company appropriated by him for his wrongful gain shall be liable under Section 447.