Section 335: Carrying on business fraudulently

335. Carrying on business fraudulently (1) Any person who knowingly is a party to a company carrying on business with intent to defraud creditors of the company or any other person shall commit an offence and shall, on conviction, be liable to a fine not exceeding 1,000,000 rupees and to imprisonment for a term not exceeding 5 years. (2) Any director of a company who— (a) by false pretences or other fraud induces a person to give credit to the company; or (b) with intent to defraud creditors of the company— (i) gives, transfers, or causes a charge to be given on, property of the company to any person; (ii) causes property to be given or transferred to any person; or (iii) caused or was a party to an execution being levied against any property of the company, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 1,000,000 rupees and to imprisonment for a term not exceeding 5 years.