Section 429: Power to seek assistance of Chief Metropolitan Magistrate, etc

Companies Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
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Legal Commentary & Landmark Judgments: Section 429

Section 429 empowers the Tribunal to direct the Chief Metropolitan Magistrate, Chief Judicial Magistrate, or District Magistrate within whose jurisdiction company property or books of account are situated to take physical possession and hand them over to the Tribunal or liquidator.

  • Requisition to Executive Magistrates: Authorizes the Tribunal to direct the CMM, CJM, or District Magistrate to secure custody of property, books of accounts, or other records of a company.
  • Duty of Magistrate to Execute: Imposes a mandatory statutory obligation on the Magistrate to take possession of the specified assets and records upon receiving the Tribunal's written request.
  • Authorization of Police Force: Empowers the Magistrate to use such force as may be necessary to overcome resistance, break open locks, and ensure transfer of custody to the Tribunal or its appointed officers.
Key Landmark Precedents:
  • Innoventive Industries Ltd. v. ICICI Bank, (2018) 1 SCC 407: Highlighted the statutory mechanics of securing corporate assets, emphasizing that tribunal directions for asset custody must be strictly enforced through administrative and police assistance.
  • Asset Reconstruction Company (India) Ltd. v. State of Gujarat, 2017 SCC OnLine Guj 2329: Clarified that ministerial assistance under Section 429 does not empower the Magistrate to adjudicate third-party claims or dispute the Tribunal's requisition.
  • State of Maharashtra v. Nisar Ali, (2012) 6 SCC 493: Affirmed that executive magistrates executing judicial warrants act in a purely ministerial capacity to execute possession orders.
Courtroom Practice & Strategic Litigation Guidance:

In corporate fraud, asset siphoning, or winding-up proceedings where management conceals records or physically resists handing over corporate assets, file an urgent application under Section 429 seeking coercive warrants directed to the local CMM/DM for police-assisted physical takeover.