224. Actions to be taken in pursuance of inspector‘s report.— (1) If, from an inspector‘s report,
made under section 223, it appears to the Central Government that any person has, in relation to the
company or in relation to any other body corporate or other person whose affairs have been investigated
under this Chapter been guilty of any offence for which he is criminally liable, the Central Government
may prosecute such person for the offence and it shall be the duty of all officers and other employees of
the company or body corporate to give the Central Government the necessary assistance in connection
with the prosecution.
(2) If any company or other body corporate is liable to be wound up under this Act and it appears to
the Central Government from any such report made under section 223 that it is expedient so to do by
reason of any such circumstances as are referred to in section 213, the Central Government may, unless
the company or body corporate is already being wound up by the Tribunal, cause to be presented to the
Tribunal by any person authorised by the Central Government in this behalf—
(a) a petition for the winding up of the company or body corporate on the ground that it is just
and equitable that it should be wound up;
(b) an application under section 241; or
(c) both.
(3) If from any such report as aforesaid, it appears to the Central Government that proceedings ought,
in the public interest, to be brought by the company or any body corporate whose affairs have been
investigated under this Chapter—
(a) for the recovery of damages in respect of any fraud, misfeasance or other misconduct in
connection with the promotion or formation, or the management of the affairs, of such company or
body corporate; or
(b) for the recovery of any property of such company or body corporate which has been
misapplied or wrongfully retained,
the Central Government may itself bring proceedings for winding up in the name of such company or
body corporate.
(4) The Central Government, shall be indemnified by such company or body corporate against any
costs or expenses incurred by it in, or in connection with, any proceedings brought by virtue of sub-
section (3).
(5) Where the report made by an inspector states that fraud has taken place in a company and due to
such fraud any director, key managerial personnel, other officer of the company or any other person or
entity, has taken undue advantage or benefit, whether in the form of any asset, property or cash or in any
other manner, the Central Government may file an application before the Tribunal for appropriate orders
with regard to disgorgement of such asset, property, or cash, as the case may be, and also for holding such
director, key managerial personnel, officer or other person liable personally without any limitation of
liability.
