AI Overview...
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Section 213 of the Companies Act, 2013 - Empowers the Central Government to order an investigation into a company's affairs, or to initiate winding-up proceedings, and allows for the extension of the company's financial year in certain cases. It also provides the basis for initiating proceedings related to winding up and investigations, often in conjunction with other provisions like Sections 238, 15, 17, 18, and 25 of the Companies Act or the Insolvency and Bankruptcy Code (IB Code) Tahera Iqbal vs M/s. Vikram Structures Pvt. Ltd. - National Company Law Tribunal, Madhusudan Rao VS Laxmi Narayan Sharma - National Company Law Tribunal, Shankar Sundaram VS Amalgamations Ltd. - Madras.
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Jurisdiction and Proceedings - Section 213 is invoked in various contexts, including winding up of companies, investigations, and insolvency processes. Courts have applied Section 213 in cases involving unregistered companies, investigations under the Companies Act, and insolvency proceedings under the IB Code, often highlighting its role in facilitating legal actions against companies In Re: The Indian Companies Act, 1866 and of the Calcutta Jute Mills Co. Limited VS . - Calcutta, Unique Training Corporation India Private Limited VS Smt. Lakshmi Satish Kumar - National Company Law Appellate Tribunal.
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Legal Interplay and Conflicts - There are noted conflicts between orders under the Companies Act and provisions of the IB Code, particularly Sections 238 and others, which can impact the enforcement of actions under Section 213. Courts have emphasized that certain proceedings under the Companies Act, when allowed to proceed, should not conflict with insolvency laws Tahera Iqbal vs M/s. Vikram Structures Pvt. Ltd. - National Company Law Tribunal.
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Investigations and Appeals - Section 213 is frequently invoked in investigations, including by agencies like SFIO, and in appeals challenging investigation orders or winding-up decisions. The provisions enable authorities and courts to scrutinize corporate affairs thoroughly, with appeals often filed under Section 421 of the Companies Act Tahera Iqbal vs M/s. Vikram Structures Pvt. Ltd. - National Company Law Tribunal, Unique Training Corporation India Private Limited VS Smt. Lakshmi Satish Kumar - National Company Law Appellate Tribunal.
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Related Provisions and Applications - Section 213 interacts with other sections such as 189 (winding-up), 221 (powers of liquidator), 292 (official liquidator's duties), and provisions of the IB Code like Sections 66 and 60(5). These interactions are crucial in insolvency, liquidation, and investigation processes, affecting the scope and nature of proceedings . VS . - Madras, Smaaash Entertainment Private Limited vs Shripal Sevantilal Morakhia - National Company Law Tribunal.
Analysis and Conclusion:
Section 213 of the Companies Act, 2013, is a comprehensive legal tool enabling the Central Government and courts to order investigations and winding-up of companies. It plays a pivotal role in corporate regulation, insolvency, and enforcement actions, often intersecting with other legal provisions. While it provides broad powers, its application must be balanced with other laws to prevent conflicts, especially with insolvency proceedings under the IB Code. Its use is critical in corporate governance, ensuring accountability, and facilitating legal scrutiny of corporate affairs.
References:
- INDNCLT00000022237
- 04500001099
- 00900086070
- INDNCLAT00000003598
- INDNCLT00000034763
- INDNCLT00000020285
- INDNCLT00000001504
- INDNCLT00000001630
- 02100137329
- 02100047803
Search Results for "Section 213 of Companies Act"
2023 Supreme(Online)(NCLT) 1143 • India - National Company Law Tribunal
(Retd.) T. Krishnavalli, Shri Manoj Kumar Dubey, JJ
Section 213 of the Companies Act, 2013 which is reproduced hereunder: Companies Act, 2013 . If orders under the Companies Act, 2013 were allowed to go through, it would come in direct conflict with Section 238 as well as Sections 15 , 17, 18 and 25 of the Code.
2019 0 Supreme(NCLAT) 938 • India - National Company Law Appellate Tribunal
S.J.MUKHOPADHAYA, BANSI LAL BHAT
Corporate Insolvency Resolution Process - Section 66 of the I&B Code, Section 213 of the Companies Act - 213 Fact of the ... 213 of the Companies Act, and whether the transactions not covered by Section 43 r/w Sections 44 & 45 could be entertained in an ... application under Section 66. ... in terms of Section 213 of the Companies#HL_....
1880 0 Supreme(Cal) 111 • India - Calcutta
WILSON
Jurisdiction - Winding Up - Unregistered Company - Indian Companies' Act, 1862 - Section 213 - Principal Place of Business - Jurisdiction ... Ratio Decidendi: The court applied Section 213 of the Indian Companies' Act, 1862, which provided for the winding up of unregistered ... Finding of the Court: The court found that the company was an Indian company within the meaning of Section 213 of the ... The question d....
2025 Supreme(Online)(NCLAT) 308 • India - National Company Law Appellate Tribunal
Justice Sharad Kumar Sharma (Member(Judicial)) , Hon'ble Mr. Jatindranath Swain (Member (Technical)) ,
8) ... ... Facts of the case: ... The Appellants challenged an order directing an investigation into their Company under Section ... 213 and particularly, that as contained under Section 213(b) of the Companies Act, 2013. ... This is a Company Appeal preferred, by invoking the provisions contained under Section 421 of the Companies Act, 2013, challenging an order dated 29.09.2022 which has been passed under Section#HL_....
2025 Supreme(Online)(NCLT) 6140 • India - National Company Law Tribunal
Sh. Hariharan Neelakanta Iyer, Member (Technical), Ms. Lakshmi Gurung, Member (Judicial)
Section 213 of the Companies Act, 2013 is extracted below: Section 213 (b) of the Companies Act, 2013 Section 189 of Companies Act, 2013 189. ... It is pertinent to mention that subsequent to the order dated 31.07.2024 issuing notice to Respondents under section 213 of Companies Act, some of the applications filed by the R....
2025 Supreme(Online)(NCLT) 3936 • India - National Company Law Tribunal
UMESH KUMAR SHUKLA, MEMBER (TECHNICAL), KISHORE VEMULAPALLI, MEMBER (JUDICIAL)
This judgment addresses the maintainability of a Company Petition under Section 213, 241, 242 of the Companies Act, 2013. ... Respondents Under Section: 213, 241, 242 of Companies Act, 2013 Rule: 11 of NCLT Rules, 2016 Order delivered on 07.08.2025 CORAM: p class="para" data-page="1
2025 Supreme(Online)(NCLT) 81 • India - National Company Law Tribunal
DR. VENKATA RAMAKRISHNA BADARINATH NANDULA, SH. CHARAN SINGH, JJ
Section 213 of The Companies Act, 2013 . Section 213 of The Companies Act, 2013 ? SUBMISSIONS Section 213 of The Companies Act, 2013 , but that the said reference cannot be with a direction to conduct an investigation into the affairs of the Corporate Debtor by SFIO. Section 213 of the Section 213 of The #HL_....
2025 Supreme(Online)(NCLT) 11 • India - National Company Law Tribunal
K. Biswal, Ravichandran Ramasamy, JJ
(A) Insolvency and Bankruptcy Code, 2016 - Section 60(5) - Companies Act, 2013 - Section 213(b) - Interlocutory Application for sale ... Corporate Debtor - Liquidator directed to issue sale certificate subject to ongoing investigation - Eligibility of bidder under Section ... ... ... Issues: The main issues included the eligibility of the bidder under Section 29A(g) due to pending avoidance applications ... under section 213(b) of....
2020 0 Supreme(Mad) 1391 • India - Madras
M.SUNDAR
Liquidation - ICT-Project - Companies Act, 2013, Section 213, Section 221, Section 292 - The court discussed the continuation ... The key legal provisions discussed were Section 213 (Power to order costs of winding up to be paid out of assets), Section 221 (Freezing ... of assets), and Section 292 (Powers and duties of Official Liquidator). ... This Court is informed by the learned Dy OL that salaries to the employ....
2002 0 Supreme(Mad) 388 • India - Madras
N.V.BALASUBRAMANIAN
Section 213 of the Companies Act empowers the Central Government to extend the financial year of a holding company or that of its ... Section 239 of the Companies Act defines the power of Inspectors to carry out investigation into the affairs of related companies ... and no order in terms of Section 402 of the Companies Act can be passed against the subsidiaries. ... Section 402 ....
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