COMPANIES ACT, 2013

Sections 207 & 206

Conduct of inspection and inquiry - Petition for quashing of look out circular - No allegation of non-cooperation against key managerial personnel - Non-involvement in any non-compoundable offence

Regional director initiated investigation and inspection of records and accounts of company as per sections 207 and 206. The Regional director issued look out circular against all key managerial personnel of the company. Therefore, they filed petition for quashing of the look out circular on the ground that there was no material, whatsoever available showing their involvement in non-compoundable offences. Further, there was no allegation of non-corporation in the inspection by any of the key managerial personnel. Held: It is found that the inspection of the company is completed, wherein show cause notice is issued to the key managerial personnel for offence, which is compoundable. There is no allegation of non-cooperation in the inspection against any of the key managerial personnel. There is no existence of the key managerial personnel involvement in any non-compoundable offence. No material was also placed in support of bald assertion that they were a flight risk. Thus, the look out circular was set aside.

REFERRED :

FAVOUR : In favour of petitioner

A.Y. :

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