Section 329, The Companies Act, 2009

(1) All directors who knowingly pay, or are party to thepayment of dividend out of capital or otherwise in contravention of this Part shall be personally liable jointly and severally to refund to the company any amount so paid. (2) The directors shall have the right to recover the dividend from shareholders who receive it with knowledge that the company had no power to pay it. PART XV–RECEIVERS AND MANAGERS Appointment of receivers and managers