Amended and updated notes on section 214 of Companies Act 2013. Detail discussion on provisions and rules related to security for payment of costs and expenses of investigation.
Chapter XIV (Sections 206–229) of the Companies Act, 2013 (CA 2013) deals with the provisions related to Inspection, Inquiry and Investigation. Section 214 of CA 2013 provides for security for payment of costs and expenses of investigation.
Recently, we have discussed in detail section 213 (Investigation into company’s affairs in other cases) of CA 2013. Today, we learn the provisions of section 214 of Companies Act 2013.
The provisions of section 214 are effective from 1-April-2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 214 of the Companies Act 2013 read with the Companies (Inspection, Investigation and Inquiry) Rules, 2014.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XIV |
| Chapter Name | Inspection, Inquiry and Investigation |
| Section No. | 214 |
| Section Name | Security for payment of costs and expenses of investigation |
| Monthly Updated Edition | Company Law PDF |
Section 214 of Companies Act 2013: Security for payment of costs and expenses of investigation
Section 214 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.
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 subsection (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.