Section 153: Effect of irregular allotment.

(1) An allotment made by a public company before the holding of the statutory meeting to an applicant in contravention of the provisions of this Act, is voidable at the instance of the applicant—
(a) within one month after the holding of the statutory meeting of the company and not later, or
(b) where the allotment is made after the holding of the statutory meeting, within one month after the date of the allotment, and not later :
Provided that the allotment shall be so voidable notwithstanding that the company is in the course of being wound up.
(2) If any director of a company knowingly contravenes, permits or authorises the contravention of any of the provisions of this Act with respect to allotment, he is liable to compensate the company and the allottee respectively for any loss, damages or costs which the company or the allottee may have sustained or incurred thereby, but proceedings to recover any such loss, damages, or costs shall not be commenced after the expiration of two years from the date of the allotment.