Companies Act Section 214 — Security for payment of costs and expenses of investigation

CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION

Commercial / Corporate

Summary

Where the Central Government orders an investigation because it was requested under clause (b) of sub-section (1) of section 210, or because the Tribunal ordered it under section 213, the Central Government may, before appointing an inspector, ask the person who made the application to provide security for the costs and expenses of the investigation. This security cannot exceed twenty-five thousand rupees, and the amount is set as prescribed. The Central Government decides how much security it thinks is appropriate.

This security will be refunded to the applicant if the investigation leads to a prosecution.

Official Text

Where an investigation is ordered by the Central Government in pursuance of clause (b) of sub-section (1) of section 210, or in pursuance of an order made by the Tribunal under section 213, the Central Government may before appointing an inspector under sub-section (3) of section 210 or clause (b) of section 213, require the applicant to give such security not exceeding twenty-five thousand rupees as may be prescribed, as it may think fit, for payment of the costs and expenses of the investigation and such security shall be refunded to the applicant if the investigation results in prosecution.