1. Where the Central Government is of the opinion, that it is necessary to investigate into the affairs of a company,
a. on the receipt of a report of the Registrar or inspector under section 208;
b. on intimation of a special resolution passed by a company that the affairs of the company ought to be investigated; or
c. in public interest, it may order an investigation into the affairs of the company.
2. Where an order is passed by a court or the Tribunal in any proceedings before it that the affairs of a company ought to be investigated, the Central Government shall order an investigation into the affairs of that company.
3. For the purposes of this section, the Central Government may appoint one or more persons as inspectors to investigate into the affairs of the company and to report thereon in such manner as the Central Government may direct.
Legal Commentary & Landmark Judgments: Section 210
Section 210 empowers the Central Government to order an investigation into the affairs of a company on receipt of a report, a special resolution passed by members, or in the public interest.
This statutory framework establishes clear operational guidelines, balancing legal compliance with procedural safeguards.
An order of investigation under Section 210 marks the transition from routine administrative inquiry to coercive state investigation. Corporate entities cannot stall Section 210 investigations by initiating civil suits; challenges to Section 210 orders before High Courts under Article 226 require demonstrating that the Central Government's order was actuated by demonstrable malice or complete absence of relevant material.