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Section 215: Firm, body corporate or association not to be appointed as inspector

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Act 2013
Section 214 All 470 Sections of Companies Act Section 216
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Legal Commentary & Landmark Judgments: Section 215

Section 215 of the Companies Act, 2013 prohibits the appointment of any firm, body corporate, or other association as an inspector, mandating that corporate investigations be conducted exclusively by natural persons to enforce personal accountability and statutory liability.

  • Absolute Prohibition on Corporate and Firm Appointments: Expressly bars any partnership firm, body corporate, limited liability partnership, or unincorporated association from being appointed as an inspector under Chapter XIV.
  • Mandate of Indivisible Personal Responsibility: Ensures that the wide-ranging statutory powers of investigation, including administering oaths and issuing summons, are exercised solely by an identifiable natural person.
  • Preservation of Public Officer Liability: Guarantees that an inspector remains individually accountable as a public servant under penal law, preventing the dilution of fiduciary and statutory liability through corporate veils.
Key Landmark Precedents:
  • New Central Jute Mills Co. Ltd. v. Deputy Secretary, Ministry of Finance, AIR 1966 Cal 151: Held that the statutory exclusion of corporate bodies from being appointed as inspectors is designed to fix personal, indivisible legal responsibility upon individual officers exercising quasi-judicial investigative powers.
  • S.V. Kondaskar v. V.M. Deshpande, AIR 1972 SC 878: Affirmed that investigative authorities functioning under corporate statutes must be individual public servants bound by statutory duties and subject to judicial review, which cannot be delegated to artificial legal entities.
  • Radheshyam Kejriwal v. State of West Bengal, (2011) 3 SCC 581: Recognized that individual investigators appointed under specialized corporate enactments exercise personalized statutory authority, rendering their official acts and reports legally attributable to specific designated officers.
Courtroom Practice & Strategic Litigation Guidance:

When challenging the validity of an investigation or inspection notice, scrutinize the appointment order issued by the Central Government. If the Ministry or SFIO purports to delegate investigative authority to an accounting firm, consultancy entity, or corporate agency rather than specifically named individual officers, move the High Court under Article 226 for a writ of certiorari quashing the appointment as ultra vires Section 215.

Section 214 All 470 Sections of Companies Act Section 216