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Urgent explanation required

Sejal (-) (157 Points)

09 March 2015  
can any one explain the difference between section 209 of companies act 2013 and section 220 of companies act 2013. Both are regarding seizure of documents

 5 Replies

Abhishek Singh (Chartered Accountant) (155 Points)
Replied 09 March 2015

Section 209 of co. Act 2013 relates to search and seizure on order of special court of all kmp,director, auditor, and cs.

Section 220 of co. Act 2013 the inspector can take copies or extract of books and papers. Even permission of 1st class magistrate is also not required.

Arpit Shah (Accountant) (21408 Points)
Replied 09 March 2015

Sec 209: Search and Seizure
1) Where on information , the Registrar has a reasonable ground to believe that the books and papers of a company relating to key managerial personnel or any director /auditors/company secretary are likely to be altered/mutilated/destroyed/altered/falsified, he may after obtaining the order from the special court for seizure of such books
 Enter the search the place where books are kept
 Seize such books and papers as he may consider necessary, after allowing the company to take copies, extract from such papers at its cost
2) The Registrar/Inspector shall return the paper seized within 180 days to the company from whose custody the papers are seized
3) After 180 days if the Registrar /inspector for a further period of 180 days if needed again
4) The Registrar/inspection may place their identification marks before returning the book in such other manner as he consider necessary.
5) The code of Criminal Procedure relating to every search and seizure will apply

Arpit Shah (Accountant) (21408 Points)
Replied 09 March 2015

Sec 220: Seizure of documents by inspector
1) Where in the course of investigation, the inspector has reasonable ground to believe that books and papers, relating to body corporate, managing director, manager, are destroyed mutilated , altered, falsified the inspector may:-
„Ï Enter, which such assistance the place where such books are kept
„Ï Seize books and paper after allowing the company to take copies or extract of them for the purpose of investigation
2) The inspector shall keep in custody the books and papers for a period till the conclusion of the investigation and after that he will return the same to the company , managing director, manager or any person from whom it is seized
3) The inspector may before returning such books and paper place identification marks or deal with the same in such manner as may be considered necessary.
4) The code of Criminal Procedure may apply to every search and Seizure made under this section.

sharvan kumar (am) (94 Points)
Replied 09 March 2015

I have prepared a word file giving interpretation of these two sections explaining the minute difference among both. Please ping ur mail id here. I will back to u via mail. Thanks. Not possible to type in mobile so much

Sharvan kumar (Partner) (57 Points)
Replied 09 March 2015

Section 209.  (Search and

Seizure)

(1) Where, upon information in his possession or otherwise, the Registrar or

Inspector has reasonable ground to believe that the books and papers of a company, or

Relating to the key managerial personnel or any director or auditor or company secretary in

Practice if the company has not appointed a company secretary, are likely to be destroyed,

Mutilated, altered, falsified or secreted, he may, after obtaining an order from the

Special Court for the seizure of such books and papers,—

(A) Enter, with such assistance as may be required, and search, the place or

Places where such books or papers are kept; and

(b) Seize such books and papers as he considers necessary after allowing the

Company to take copies of, or extracts from, such books or papers at its cost.

(2) The Registrar or inspector shall return the books and papers seized under subsection

(1), as soon as may be, and in any case not later than one hundred and eightieth day

After such seizure, to the company from whose custody or power such books or papers were

Seized:

Provided that the books and papers may be called for by the Registrar or inspector for a

Further period of one hundred and eighty days by an order in writing if they are needed again:

Provided further that the Registrar or inspector may, before returning such books

And papers as aforesaid, take copies of, or extracts from them or place identification marks

On them or any part thereof or deal with the same in such other manner as he considers

Necessary.

(3) The provisions of the Code of Criminal Procedure, 1973 relating to searches

Or seizures shall apply, mutatis mutandis, to every search and seizure made under this

Section.

 

 

        

 

Section 220. (Seizure of

Documents by

Inspector   )

(1) Where in the course of an investigation under this Chapter, the inspector has

Reasonable grounds to believe that the books and papers of, or relating to, any company or

Other body corporate or managing director or manager of such company are likely to be

Destroyed, mutilated, altered, falsified or secreted, the inspector may—

(a) Enter, with such assistance as may be required, the place or places where

Such books and papers are kept in such manner as may be required; and

(b) Seize books and papers as he considers necessary after allowing the company

To take copies of, or extracts from, such books and papers at its cost for the purposes

Of his investigation.

(2) The inspector shall keep in his custody the books and papers seized under this

Section as he considers

Necessary and thereafter shall return the same to the company or the other body corporate,

Or, as the case may be, to the managing director or the manager or any other person from

Whose custody or power they were seized:

Provided that the inspector may, before returning such books and papers as aforesaid,

Take copies of, or extracts from them or place identification marks on them or any part thereof

Or deal with the same in such manner as he considers necessary.

(3) The provisions of the Code of Criminal Procedure, 1973, relating to searches or

Seizures shall apply mutatis mutandis to every search or seizure made under this section.

 

Difference between Section 209& Section 220

Basis Of Difference

Section 209(Search & Seizure)

Section 220(Seizure of Documents by Inspector)

Right To Inspect& Seize

Right is given to Registrar & Inspector

Right is given to inspector only in case of inspection.

Books& Papers belongs to:

Here, the books & papers which are likely to be destroyed,

Mutilated, altered, falsified or secreted are related to company, KMP, any Director, Auditor or  Company Secretary in practice if the company has not appointed a company secretary

Here, the books & papers which are likely to be destroyed,

Mutilated, altered, falsified or secreted are related to company, other body corporate, managing director, manager of such company.

Order from special Court

Order required

No such order is required

Time period to keep the books& papers

Maximum 180 days. To keep after that permission has to be taken in writing.

Inspector can keep the books & papers till the conclusion of investigation.

 

 

 

 

 

 

 

These are some of the minute differences between these two sections.

Further any query & Suggestions are welcome.

Thanks

Sharvan Kumar

Ph no:9891987513

Email: Sharvankumar100327 @ gmail.com

 

 

 

 

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