221. Freezing of assets of company on inquiry and investigation
(1) Where it appears to the Tribunal, on a reference made to it by the Central
Government or in connection with any inquiry or investigation into the affairs of a company
under this Chapter or on any complaint made by such number of members as specified under
sub-section (1) of section 244 or a creditor having one lakh amount outstanding against the
company or any other person having a reasonable ground to believe that the removal,
transfer or disposal of funds, assets, properties of the company is likely to take place in a
manner that is prejudicial to the interests of the company or its shareholders or creditors or
in public interest, it may by order direct that such transfer, removal or disposal shall not take
place during such period not exceeding three years as may be specified in the order or may
take place subject to such conditions and restrictions as the Tribunal may deem fit.
(2) In case of any removal, transfer or disposal of funds, assets, or properties of the
company in contravention of the order of the Tribunal under sub-section (1), the company
shall be punishable with fine which shall not be less than one lakh rupees but which may
extend to twenty-five lakh rupees and every officer of the company who is in default shall be
punishable with imprisonment for a term which may extend to three years or with fine which
shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with
both.