1. Where the Company Liquidator is of the opinion that a fraud has been committed by any person in respect of the company, he shall immediately make a report to the Tribunal and the Tribunal shall, without prejudice to the process of winding up, order for investigation under section 210 and on consideration of the report of such investigation, the Tribunal may pass such order and give such directions under this Chapter as it may consider necessary including the direction that such person shall attend before the Tribunal on a day appointed by it for that purpose and be examined as to the promotion or formation or the conduct of the business of the company or as to his conduct and dealings as officer thereof or otherwise.
2. The provisions of section 300 shall mutatis mutandis apply in relation to any examination directed under sub-section (1 ).
Legal Commentary & Landmark Judgments: Section 317
Section 317 of the Companies Act, 2013 empowered voluntary liquidators to report fraud to the Tribunal to trigger judicial examination; omitted by the IBC 2016, this investigatory mechanism now operates under Sections 66, 67, and Section 300 of the 2013 Act.
If an insolvency professional in voluntary liquidation uncovers diversion of funds or fraudulent trading, file an application under Sections 66 and 67 of the IBC or invoke NCLT's powers under Section 300 CA 2013; draft pleadings with forensic audit reports to satisfy the prima facie fraud threshold.