Section 241 — Application to Tribunal for relief in cases of oppression, etc

(1) Any member of a company
who complains that—
(a) the affairs of the company have been or are being conducted in a manner prejudicial to public
interest or in a manner prejudicial or oppressive to him or any other member or members or in a manner
prejudicial to the interests of the company; or
(b) the material change, not being a change brought about by, or in the interests of, any creditors,
including debenture holders or any class of shareholders of the company, has taken place in the
management or control of the company, whether by an alteration in the Board of Directors, or manager,
or in the ownership of the company’s shares, or if it has no share capital, in its membership, or in any
other manner whatsoever, and that by reason of such change, it is likely that the affairs of the company
will be conducted in a manner prejudicial to its interests or its members or any class of members,
may apply to the Tribunal, provided such member has a right to apply under section 244, for an order under
this Chapter.
(2) The Central Government, if it is of the opinion that the affairs of the company are being conducted
in a manner prejudicial to public interest, it may itself apply to the Tribunal for an order under this Chapter.

1. Subs. by Act 22 of 2019, s. 32, for “punishable with fine which shall not be less than twenty-five thousand rupees but which
may extend to five lakh rupees” (w.e.f. 2-11-2018).

1[Provided that the applicants under this sub-section, in respect of such company or class of companies,
as may be prescribed, shall be made before the Principal Bench of the Tribunal which shall be dealt with
by such Bench.]
1[(3) Where in the opinion of the Central Government there exist circumstances suggesting that—
(a) any person concerned in the conduct and management of the affairs of a company is or has been
in connection therewith guilty of fraud, misfeasance, persistent negligence or default in carrying out
his obligations and functions under the law or of breach of trust;
(b) the business of a company is not or has not been conduct ed and managed by such person in
accordance with sound business principle or prudent commercial practices;
(c) a company is or has been conducte d and managed by such person in a manner which likely to
cause, or has caused, serious injury or damage to the interest of the trade, industry or business to which
such company pertains; or
(d) the business of a company is or has been conducted and managed by such person with intent to
default its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose or
in a manner prejudicial to public interest,
the Central Government may intiate a case against such person and refer the s ame to the Tribunal with a
request that the Tribunal may inquire into the case and record a decision as to whether or not such person
is a fit and proper person to hold the officer of director or any other office connected with the conduct and
management of any company.
(4) The person against whom a case is referred to the Tribunal under sub-section (3), shall be jointed
as a respondent to the application.
(5) Every application under sub-section (3)—
(a) shall contain a concise statement of such circumstanc es and materials as the Central
Government may consider necessary for the purpose of the inquiry; and
(b) shall be signed and verified in the manner laid down in the Code of Civil Procedure (5 of