An investigation under this Chapter may be initiated notwithstanding, and no such investigation shall be stopped or suspended by reason only of, the fact that:—
a. an application has been made under section 241;
b. the company has passed a special resolution for voluntary winding up; or
c. any other proceeding for the winding up of the company is pending before the Tribunal:
Provided that: where a winding up order is passed by the Tribunal in a proceeding referred to in clause (c ), the inspector shall inform the Tribunal about the pendency of the investigation proceedings before him and the Tribunal shall pass such order as it may deem fit:
Provided further that: nothing in the winding up order shall absolve any director or other employee of the company from participating in the proceedings before the inspector or any liability as a result of the finding by the inspector.
Legal Commentary & Landmark Judgments: Section 226
Section 226 of the Companies Act, 2013 codifies the principle of non-abatement, ensuring that an investigation into the affairs of a company may be initiated or continued notwithstanding voluntary winding up, pending winding-up petitions, or parallel insolvency proceedings.
When a company enters CIRP or liquidation under the IBC, ex-directors often attempt to argue that the Section 14 moratorium halts pending investigations under Chapter XIV. Rebut this contention by citing Section 226 and settled NCLAT precedent: the IBC moratorium covers civil recovery claims and debt enforcement against corporate assets, but has no application to statutory investigations into corporate fraud, which proceed against officers without procedural impediment.