Investors Lose Challenge to Corporate Probe After Deliberate Avoidance of Legal Proceedings Under Section 213(1)

NCLAT upheld NCLT's order directing investigation into company affairs, rejecting appellant's claim of natural justice violation. The Appellate Tribunal determined that proper notice was served through substitutive mode, and the appellant deliberately avoided participating in proceedings. Since the investigation is a fact-finding stage and does not conclusively determine guilt, the tribunal declined interference. The appellant retains available defenses during the investigative process. Appeal was consequently dismissed, maintaining the original investigation order. .....

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