Category Archives: Chapter XIV – CA2013

INSPECTION, INQUIRY AND INVESTIGATION

Arrest under Companies Act, 2013


The term, “Arrest”, though considered alien to corporate jurisprudence, occurs five times in Section 212 of the Companies Act, 2013 and once in section heading of Section 301. Ministry of Corporate Affairs on 24th August 2017 notified sub – section 8 to sub – section 10 of Section 212 of the Companies Act, 2013 and the Companies (Arrests in connection with Investigation by Serious Fraud Investigation Office) Rules, 2017.

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Companies Act 2013 Amended by Insolvency and Bankruptcy Code 2016


A notification issued by Ministry of Corporate Affairs notified section 255 of the Insolvency and Bankruptcy Code, 2016. By virtue of notification of Section 255 of Insolvency and Bankruptcy Code, 2016; the Companies Act, 2013, stands amended in accordance with Schedule XI of the IBC2016 with effect from 15th November 2016. We shall have a short discussion here.

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Notification of Sections Relevant for NCLT


Yesterday late evening, I posted here about press release issued by Ministry of Corporate Affairs. Soon thereafter, two files uploaded on Official Gazette website with two notifications in each. In earlier post here today, we discussed establishment and jurisdiction of various NCLT benches.

In this post, we will have a bird’s eye view on Sections notified on 1st June 2016 related to NCLT.

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POWER TO APPOINT INSPECTORS


“We will end the Inspector – Raj”

This is most promising promise by Indian politicians since last 25 years or more. But Inspectors are essential part of our law enforcement system. All prominent laws have provision of inspectors including the Companies Act, 2013. Recently, Ministry of Corporate Affairs circulated a draft of a notification pending publication in Official Gazette. We will discuss this notification and law behind this notification.

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INSPECTION, INVESTIGATION AND INQUIRY RULES


While discussing Section 211 of the Companies Act 2013 earlier here, the Central Government shall establish Serious Fraud Investigation Office to investigate fraud related to companies.

Rule 3 of the Companies (Inspection, Investigation and Inquiry) Rules 2014 supplement Section 211(2) of the Act.

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INSPECTOR’S REPORT AND THEREAFTER


Consequence of any investigation is report. The Report is just a milestone. We will discuss the journey ahead in this post.

Inspector’s Report (Section 223):

In inspector shall submit all interim reports, if any, and final report to the Central Government.

Every report shall be in writing or printed as per direction of the Central Government.

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PROCEDURE RELATED TO INQUIRY AND INVESTIGATIONS


We are going to deal corporate frauds, genre of crime committed by most educated, polished, professional, greedy white colour criminals. You may find these people to come out on technical or procedural grounds even after committed in all black and whites.

HUMAN INSPECTOR (SECTION 215):

No firm, body corporate or other association shall be appointed as an inspector.

This leaves only human being to be appointed as inspector.

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