266. Power of Tribunal to assess damages against delinquent directors, etc
(1) If, in the course of the scrutiny or implementation of any scheme or proposal
including the draft scheme or proposal, it appears to the Tribunal that any person who has
taken part in the promotion, formation or management of the sick company or its undertaking,
including any director, manager, officer or employee of the sick company who are or have
been in employment of such company,—
(a) has misapplied or retained, or become liable or accountable for, any money or
property of the sick company; or
(b) has been guilty of any misfeasance, malfeasance, non-feasance or breach of
trust in relation to the sick company,
it may, by order, direct him to repay or restore the money or property, with or without interest,
as it thinks just, or to contribute such sum to the assets of the sick company or the other
person, entitled thereto by way of compensation in respect of the misapplication, retainer,
misfeasance, malfeasance, non-feasance or breach of trust as the Tribunal thinks just and
proper:
Provided that such direction by the Tribunal shall be without prejudice to any other
legal action that may be taken against the person including any punishment for fraud in the
manner as provided in section 447.
(2) If the Tribunal is satisfied on the basis of the information and evidence in its possession
with respect to any person who is or was a director or an officer or other employee of the sick
company, that such person by himself or along with others had diverted the funds or other
property of such company for any purpose other than the purposes of the company or had
managed the affairs of the company in a manner highly detrimental to the interests of the
company, the Tribunal shall, by order, direct the public financial institutions, scheduled banks
and State level institutions not to provide, for a maximum period of ten years from the date of
the order, any financial assistance to such person or any firm of which such person is a partner
or any company or other body corporate of which such person is a director, by whatever name
called, or to disqualify the said director, promoter, manager from being appointed as a director
in any company registered under this Act for a maximum period of six years.
(3) No order shall be made by the Tribunal under this section against any person
unless such person has been given a reasonable opportunity of being heard.