POWER OF REGISTRAR TO CALL FOR INFORMATION, ETC.

261.

Power of registrar to call for i)information or ii)explanation.

(1)
Where, on perusal of
i)any document which is submitted to him under this Ordinance, or
ii)any a)notice,
b)advertisement or
c)other communication, or
iii)otherwise,
the registrar is of opinion that any
a)information,
b)explanation or
c)document
is necessary with respect to any matter,
he may,
by a written order,
call upon
i)the company and
ii)any of its present or past
a)directors,
b)officers or
c)auditors
to furnish

i) sucha) information or b)explanation in writing, or

ii)such document,

within such time not being less than fourteen days

as he may specify in the order:
PROVISO:
Provided that a
a)director,
b)officer or
c)auditor
who ceased to hold office more than six years
before the date of the order of the registrar
shall not be compelled to furnish i) information or ii)explanation or iii)document
under this sub-section.

(2)
On the receipt of an order under sub-section (1)
it shall be the duty of

i)the company and

ii)all persons
who a)are or b)have been
a)directors, b)officers or c)auditors
of the company

to furnish such a)information, b)explanation or c)documents

to the best of their power.
(3)
1) If no a)information or b)explanation
is furnished within the time specified or
2) if the a)information or b)explanation
furnished is,
in the opinion of the registrar,
inadequate,
1)the registrar may if he deems fit,
by written order,
call on i)the company and
ii)any such person as is referred to in sub-section (1) or (2)
to produce before him
for his inspection
such

a)books and
b)papers

as he considers necessary
within such time as he may specify in the order; and

2)it shall be the duty

i) of the company and
ii)of such persons
to produce such a)books and b)papers.
(4)
If

i)any such company or

ii)any such person

as is referred to in sub-section (1), (2) or (3)

i)refuses or
ii)makes default
i)in furnishing any such information or
ii)in producing any such a)books or b)papers

1)the company shall be liable

in respect of each offence
i)to a fine
which may extend to twenty thousand rupees and
ii)to a further fine which may extend to five hundred rupees
for every day after the first during which the default continues, and
2)every officer of the company
who

a)

i)knowingly and
ii)wilfully
i)authorises or
ii)permits, or

b)is a party to, the default

i)shall be punishable with imprisonment of either description
for a term which may extend to one year, and
ii)shall also be liable to fine and
3)the authority trying the offence may,
a)on the application of the registrar and
b)upon notice to the company,

make an order
directing the company
to produce such

i)books or
ii)papers

as in its opinion
may reasonably be required
by the registrar for his investigation.
(5)
On receipt of such a)information or
b)explanation or
c)production of any i)books and ii)papers,
1)the registrar may

a)annex the same or

b)any copy thereof or
c)extract therefrom

to the original document submitted to him; and

2)any document so annexed
shall be subject to the provisions
as to

a)inspection and
b)the taking of extracts and
c)furnishing of copies

to which the original document is subject.

(6)
1)If the

i) information or
ii)explanation or
iii)book or
iv)papers

required by the registrar under sub-section (1)

is not furnished within the specified time, or
2)if after perusal of such

the registrar is of opinion

1)that

i)information or
ii) explanation or
iii)books or
iv)papers

i)the document in question or

ii)the information or
iii)explanation or
iv)book or
v)paper
discloses an unsatisfactory state of affairs, or
2)that it does not disclose a

a)full and
b)fair

statement of the matter to which it purports to relate,

the registrar shall

i)without prejudice to any other provisions, and

ii)whether or not action undera) sub-section (3) or
b)sub-section (4)
has been taken,

report in writing the circumstances of the case to the Commission.

262.

Seizure of documents by registrar.

(1)
Where, upon i)information in his possession or
ii)otherwise,
the registrar has reasonable ground to believe that
a)books and b)papers

i)of, or
ii)relating to,

a)any company or
b)any i)chief executive or
ii)officer
of such company or
c)any associate of such person

may be

a)destroyed,
b)mutilated,
c)altered,
d)falsified or
e)secreted,

the registrar may,

after obtaining permission of

a)the Magistrate of the first class or

b)the Court,

i)search and
ii)seize

such i)books and

ii)papers.
(2)
For the purposes of sub-section (1),
the registrar may,
after he has obtained the permission of the

a)Magistrate or b)Court

under that sub-section,

also authorise any officer subordinate to him,
not inferior in rank to an assistant registrar :
(a)

to enter, with such assistance as may be required,

the place where suchi) books and ii)papers are kept;

(b)

to search that place in the manner specified in the order; and

(c)

to seize suchi) books and ii)papers as he considers necessary.

(3)
The registrar shall return the
seized under this section

i) books and ii)papers

i)as soon as may be and
ii)in any case not later than
the thirtieth day after such seizure,

i)to the company or, as the case may be,

ii)to the chief executive or
iii)any other person

from whose i)custody or ii)power

they were seized:
PROVISO:
Provided that
the Commission may,
after providing to the company an opportunity to show cause against the order
proposed to be made by it,

 allow the registrar to retain anyi) books and ii)papers

for a further period not exceeding thirty days:
Provided further that
the registrar may,
before returningi) books and ii)papers
as aforesaid,
take

i)copies of, or
ii)extracts from them or
iii)put such marks of identification thereon

as he considers necessary.
(4)
Save as otherwise provided in this section,
every i)search or ii)seizure
made under this section
shall be carried out in accordance with the
provisions of the Code of Criminal Procedure, 1898 (Act V of 1898),
relating toi) searches or ii)seizures
made under that Code.