Explain any four powers of National Company Law Tribunal (NCLT) with regard to inspection, inquiry and investigation.
CS Executive · Jurisprudence, Interpretation and General Laws · PYQS · June 2022
Explain any four powers of National Company Law Tribunal (NCLT) with regard to inspection, inquiry and investigation.
Answer & Explanation:
Under section 210(2) of the Companies Act, 2013, National Company Law Tribunal (NCLT) has power to order investigation of the affairs of the Company. Under Section 213 of the Companies Act, 2013, NCLT may ask the Central Government to investigate into the affairs of the Company in other cases on application where the business of the Company is being conducted with intention to defraud creditors, persons concerned in the formation of the company or a management of its affairs have been guilty of fraud, misfeasance of other misconduct and members have not been given all the information with respect to the affairs of the Company. Under section 216 (2) of the Companies Act, 2013, NCLT has power to order investigation of ownership of Company. Under section 218 (1) of the Companies Act, 2013, NCLT may pass suitable orders for the protection of the employees in respect of investigation under section 210, 212, 213 and 219. Under section 221 (1) of the Companies Act, 2013, NCLT can order freezing of assets of company on inquiry and investigation in case of complaint made by its members, for a period of 3 years. Under Section 222 (1) of the Companies Act, 2013, NCLT can impose restrictions in connection with securities. Under Section 224 (2) of the Companies Act, 2013, NCLT can entertain petition for Winding up of a company or Body Corporate in pursuance of Inspector's report. Under Section 224 (3) of the Companies Act, 2013, NCLT can hear petition for winding up of a Company presented by Central Government. Under Section 224 (5) of the Companies Act, 2013, NCLT may, on application of Central Government, pass order for disgorgement of assets and other matters. Under 1st Proviso to Section 226 of the Companies Act, 2013, NCLT can pass orders after inspector's intimation of pendency in investigation proceedings before him.
Topics: Company Law
Related Questions in this Topic
- What are the essentials of presentation of petition or appeal before the National Company Law Tribunal (NCLT) ?
- Discuss the provisions relating to appeal from the orders of Tribunal under Section 421 of the Companies Act, 2013?
- Briefly discuss the Constitution of National Company Law Tribunal.
- Discuss the provisions related to discharge of surety under the Indian Contract Act, 1872.
- Under the Right to Information Act, 2005, certain organizations are excluded from its purview. Explain which agencies ar...