Companies Act Section 209 — Search and seizure
CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION
Commercial / Corporate
Summary
Sub-section (1) explains that if the Registrar or an inspector has reasonable grounds to believe that a company's books and papers, or those relating to its key managerial personnel, directors, auditors, or a company secretary in practice (if the company has not appointed one), are likely to be destroyed, mutilated, altered, falsified, or hidden, they may act after getting an order from the Special Court to seize those books and papers. With that order, they can enter and search the place where such books or papers are kept, with whatever assistance is needed, and seize the books and papers they consider necessary. Before seizing, they must allow the company to take copies or extracts of those books and papers at the company's own cost.
Sub-section (2) states that the Registrar or inspector must return the seized books and papers to the company from which they were taken as soon as possible, and no later than the one hundred and eightieth day after the seizure. However, if the books and papers are needed again, the Registrar or inspector can call for them for another period of one hundred and eighty days by a written order. Additionally, before returning the books and papers, the Registrar or inspector may take copies or extracts from them, place identification marks on them or any part of them, or handle them in any other way they consider necessary.
Sub-section (3) says that the rules relating to searches and seizures under the Code of Criminal Procedure, 1973, will apply with necessary modifications to every search and seizure carried out under this section.
Official Text
(1) Where, upon information in his possession or otherwise, the Registrar or inspector has reasonable ground to believe that the books and papers of a company, or relating to the key managerial personnel or any director or auditor or company secretary in practice if the company has not appointed a company secretary, are likely to be destroyed, mutilated, altered, falsified or secreted, he may, after obtaining an order from the Special Court for the seizure of such books and papers,—
(a) enter, with such assistance as may be required, and search, the place or places where such books or papers are kept; and
(b) seize such books and papers as he considers necessary after allowing the company to take copies of, or extracts from, such books or papers at its cost.
(2) The Registrar or inspector shall return the books and papers seized under sub-section (1), as soon as may be, and in any case not later than one hundred and eightieth day after such seizure, to the company from whose custody or power such books or papers were seized:
Provided that the books and papers may be called for by the Registrar or inspector for a further period of one hundred and eighty days by an order in writing if they are needed again:
Provided further that the Registrar or inspector may, before returning such books and papers as aforesaid, take copies of, or extracts from them or place identification marks on them or any part thereof or deal with the same in such other manner as he considers necessary.
(3) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches or seizures shall apply, mutatis mutandis, to every search and seizure made under this section.