What Constitutes the Urge to Initiate Investigation Into Affairs of the Company U/s. 213

What Constitutes the Urge to Initiate Investigation Into Affairs of the Company U/s. 213 2021-05-27

The Section 213 of the Companies Act, 2013 empowers the NCLT to order an investigation into the affairs of the company on grounds of fraud, misfeasance or misconduct or withheld of information being done within the company. The debatable question of law that arises here is that “what all actions had been previously recognised by the courts in past to be sufficient enough to urge an Investigation under Section 213”. The Authors have made an exhaustive attempt in this research study to discuss specific judicial observations of NCLTs and erstwhile company courts which are necessary to understand the position of law in relation to the abovestated question, and the interrelation of the power under Section 213 with the proceedings under Insolvency and Bankruptcy Code, 2016.
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