"Non-compliance or contravention of the requirements prescribed under the Companies Act, 2013 and rules framed thereunder in framing or implementing the scheme of a compromise, arrangement involving transferor and transf

In terms of section 232(8) of the Companies Act, 2013, if a transferor company or a transferee company contravenes the provisions of this section, the transferor company or the transferee company, as the case may be, shall be punishable with fine which shall not be less than rupees one lakh but which may extend to rupees twenty-five lakh and every officer of such transferor or transferee company who is in default, shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than rupees one lakh, but which may extend to three lakh rupees, or with both. Hence, a meticulous compliance needs to be undertaken in any proposal for a scheme of merger or amalgamation.