Companies Act Section 220 — Seizure of documents by inspector
CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION
Commercial / Corporate
Summary
Sub-section (1) allows an inspector who is investigating a company to take action if they reasonably believe that the company's books and papers, or those related to the company or its managing director or manager, might be destroyed, altered, falsified, or hidden. In such a case, the inspector may enter the place where these documents are kept, with whatever help is needed, and seize the documents they consider necessary for the investigation. Before seizing the documents, the inspector must allow the company to make copies or take extracts from them, at the company's own cost.
Under clause (a) of sub-section (1), the inspector is permitted to enter the location or locations where the books and papers are kept, using whatever assistance is required, and in the manner needed for the entry.
Under clause (b) of sub-section (1), the inspector may seize the books and papers they think are necessary for the investigation, but only after giving the company the chance to make copies or take extracts from those documents at its own expense.
Sub-section (2) states that the inspector will keep the seized books and papers in their custody for as long as they consider necessary, but not beyond the end of the investigation. After that, the inspector must return the documents to the company, the other body corporate, or the managing director, manager, or any other person from whom they were taken. However, before returning the documents, the inspector may make copies or take extracts from them, put identification marks on them or any part of them, or handle them in any other way they think is necessary.
Sub-section (3) says that the rules of the Code of Criminal Procedure, 1973, which relate to searches and seizures, will apply in the same way to every search or seizure carried out under this section.
Official Text
(1) Where in the course of an investigation under this Chapter, the inspector has reasonable grounds to believe that the books and papers of, or relating to, any company or other body corporate or managing director or manager of such company are likely to be destroyed, mutilated, altered, falsified or secreted, the inspector may—
(a) enter, with such assistance as may be required, the place or places where such books and papers are kept in such manner as may be required; and
(b) seize books and papers as he considers necessary after allowing the company to take copies of, or extracts from, such books and papers at its cost for the purposes of his investigation.
(2) The inspector shall keep in his custody the books and papers seized under this section for such a period not later than the conclusion of the investigation as he considers necessary and thereafter shall return the same to the company or the other body corporate, or, as the case may be, to the managing director or the manager or any other person from whose custody or power they were seized:
Provided that the 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 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 or seizure made under this section.