NCLT cannot direct probe by SFIO into affairs of Company of defrauding creditors & others

Mr. Lagadapati Ramesh Vs Mrs. Ramanathan Bhuvaneshwari (NCLAT Delhi)

Section 212 does not empower the National Company Law Tribunal or the Adjudicating Authority to refer the matter to the Central Government for investigation by the ‘Serious Fraud Investigation Office’ even if it notices the affairs of the Company of defrauding the creditors and others.

However, investigation into affairs of company at the instance of the Tribunal has been prescribed under Section 213.

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