INSPECTION, INQUIRY AND INVESTIGATION - Proposed Amendments in the Companies Act, 2013

14.1 Chapter XIV of the Act provides for the requirements with respect to enquiry or inspection of books of accounts by the Registrar/Inspector and with respect to an investigation by the Inspector. The Committee examined the suggestion pertaining to Section 223, which provides for an Inspectors’ report, and noted that the legislative intent under Section 223 is to cover reports with respect to an investigation of companies only and no other reports. Sub-Section (3) of this Section provides that a copy of the report made under sub-section (1) may be obtained by making an application in this regard to the Central Government. Therefore, as per these provisions, any person can obtain a copy of the report referred to in Section 223. The concern expressed in the suggestions that enquiry and inspection reports must not be made available on application; was also looked into by the Committee. It was noted that the intention of the provision was to cover both the interim and final reports. The interim reports also contain conclusive findings. The reports are made available to the members of the company and other body corporate, and also to any other person, whose interests as a creditor of the company and other body corporate appear to the Central Government to be affected (in line with Section 241 of the Companies Act, 1956), and therefore, it would not be justifiable to deny them access to these reports.