Chapter XXVIII - Special Courts
Section 445
Section 445: compensation for accusation without reasonable cause
Section 445 applies the provisions of section 250 of the Code of Criminal Procedure, 1973, mutatis mutandis, to compensation for accusation without reasonable cause before the Special Court or the Court of Session.
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Need advice on Section 445?
This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
The provisions of section 250 of the Code of Criminal Procedure, 1973 shall apply mutatis mutandis to compensation for accusation without reasonable cause before the Special Court or the Court of Session.
Introduction
The section borrows the Code’s compensation mechanism for groundless accusations and applies it, with necessary changes, to proceedings before the Special Court or the Court of Session.
The section commenced on 12 September 2013 under S.O. 2754(E). The India Code consolidated text shows no amendment, and the text matches the 2013 Gazette.
Key takeaways
Borrowed provision
Section 250 of the Code of Criminal Procedure, 1973 applies mutatis mutandis.
Where it applies
Before the Special Court or the Court of Session.
What it covers
Compensation for accusation without reasonable cause.
What the section says
The provisions of section 250 of the Code of Criminal Procedure, 1973 apply mutatis mutandis to compensation for accusation without reasonable cause before the Special Court or the Court of Session.
How to read it
The conditions, amounts and procedure come from section 250 of the Code, read with the changes needed to apply it before the Special Court or the Court of Session. The Companies Act itself does not set separate conditions.
Practical preparation
If an accusation under the Act against you is dismissed, check with counsel whether the conditions of section 250 of the Code are met; raise the issue before the Special Court or the Court of Session hearing the case; if you are a complainant, make sure the accusation has a reasonable basis before filing.
Practical checklist
Do
- Document the basis of any complaint before filing it.
- Raise compensation before the court that hears the case.
Avoid
- Do not file accusations under the Act without reasonable cause.
- Do not assume compensation follows every acquittal; the Code’s conditions apply.
Illustrative example
Hypothetical: a complaint found to be groundless
A shareholder’s complaint leads to an accusation against a director before the Special Court. The court finds there was no reasonable cause for the accusation.
Provision
Section 445 applies section 250 of the Code before the Special Court.
Conditions
The court applies the conditions of that section, with the necessary changes.
Order
If the conditions are met, the court may deal with compensation under that provision.
Outcome
- Compensation depends on section 250 of the Code as applied by section 445.
Glossary
- Mutatis mutandis
- With the necessary changes in points of detail.
- Special Court
- A court established under Chapter XXVIII of the Act to try offences under the Act.
Frequently asked questions
Can an accused claim compensation for a groundless complaint under the Act?
Section 445 applies section 250 of the Code of Criminal Procedure, 1973, mutatis mutandis, to compensation for accusation without reasonable cause before the Special Court or the Court of Session.
Does the Companies Act set the amount of compensation?
No. Section 445 borrows the provisions of section 250 of the Code; it does not set its own amount.
Need help applying this provision to your situation?
Contact BizeneedLast updated 12 October 2026