Companies Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Section 426 of Companies Act: Corporate Governance & Statutory Compliance
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The Tribunal or the Appellate Tribunal may, by general or special order, direct, subject to such conditions, if any, as may be specified in the order, any of its officers or employees or any other person authorised by it to inquire into any matter connected with any proceeding or, as the case may be, appeal before it and to report to it in such manner as may be specified in the order.
Statutory Defined Terms in this Section:(Click any term for official legal definition)
Section 426 authorizes the Tribunal and Appellate Tribunal to delegate investigative, administrative, and ministerial inquiries to designated officers or experts by general or special order.
General or Special Administrative Authorization: Permits the Tribunal or Appellate Tribunal to direct any officer or designated person to inquire into specified matters and submit a factual report.
Non-Adjudicatory Inquiry Boundary: Confines delegation strictly to ministerial, evidentiary, or fact-finding inquiries, preserving the non-delegable core judicial power of final adjudication to the Members.
Statutory Reporting Obligation: Mandates the delegated officer to execute the inquiry strictly within the terms of reference and file a written report subject to inspection and objections by the litigating parties.
Key Landmark Precedents:
Competition Commission of India v. Steel Authority of India Ltd., (2010) 10 SCC 744: Established that while preliminary fact-finding and administrative functions may be delegated, the core adjudicatory function of determining civil rights cannot be abdicated or delegated.
Morgan Stanley Mutual Fund v. Kartick Das, (1994) 4 SCC 225: Held that judicial authorities cannot delegate their adjudicative authority or injunctive powers to administrative subordinates.
Rohtas Industries Ltd. v. S.D. Agarwal, AIR 1969 SC 707: Affirmed that the power to order an investigation or inquiry must be exercised with circumspection and cannot be converted into a roving fishing expedition.
Courtroom Practice & Strategic Litigation Guidance:
Litigants challenging a delegated commissioner's or liquidator's inquiry report must file written exceptions under Section 426 highlighting procedural irregularities or exceeding terms of reference prior to the Tribunal adopting the findings into its final order.
Legal Commentary & Landmark Judgments: Section 426
Section 426 authorizes the Tribunal and Appellate Tribunal to delegate investigative, administrative, and ministerial inquiries to designated officers or experts by general or special order.
Litigants challenging a delegated commissioner's or liquidator's inquiry report must file written exceptions under Section 426 highlighting procedural irregularities or exceeding terms of reference prior to the Tribunal adopting the findings into its final order.