224. Actions to be taken in pursuance of inspector’s report
(1) If, from an inspector’s report, made under section 223, it appears to the Central
Government that any person has, in relation to the company or in relation to any other body
corporate or other person whose affairs have been investigated under this Chapter been
guilty of any offence for which he is criminally liable, the Central Government may prosecute
such person for the offence and it shall be the duty of all officers and other employees of the
company or body corporate to give the Central Government the necessary assistance in
connection with the prosecution.
(2) If any company or other body corporate is liable to be wound up under this Act and
it appears to the Central Government from any such report made under section 223 that it is
expedient so to do by reason of any such circumstances as are referred to in section 213, the
Central Government may, unless the company or body corporate is already being wound up
by the Tribunal, cause to be presented to the Tribunal by any person authorised by the
Central Government in this behalf—
(a) a petition for the winding up of the company or body corporate on the
ground that it is just and equitable that it should be wound up;
(b) an application under section 241; or
(c) both.
(3) If from any such report as aforesaid, it appears to the Central Government that
proceedings ought, in the public interest, to be brought by the company or any body
corporate whose affairs have been investigated under this Chapter—
(a) for the recovery of damages in respect of any fraud, misfeasance or other
misconduct in connection with the promotion or formation, or the management of the
affairs, of such company or body corporate; or
(b) for the recovery of any property of such company or body corporate which
has been misapplied or wrongfully retained,
the Central Government may itself bring proceedings for winding up in the name of such
company or body corporate.
(4) The Central Government, shall be indemnified by such company or body corporate
against any costs or expenses incurred by it in, or in connection with, any proceedings
brought by virtue of sub-section (3).
(5) Where the report made by an inspector states that fraud has taken place in a company
and due to such fraud any director, key managerial personnel, other officer of the company or
any other person or entity, has taken undue advantage or benefit, whether in the form of any
asset, property or cash or in any other manner, the Central Government may file an application
before the Tribunal for appropriate orders with regard to disgorgement of such asset, property,
or cash, as the case may be, and also for holding such director, key managerial personnel,
officer or other person liable personally without any limitation of liability.