Power to Examine on Oath

is required to give such persons, or body corporate, a reasonable opportunity to show cause as to why such approval should not be accorded.
Duties of Inspectors are not quasi-judicial in nature, there are no litigants before him, nor is he bound by any procedure; nor is his report binding on Government [Coimbatore Spinning & Weaving Co. Ltd. Vs. M.S. Srinivasan (1959) 29 Compo Cas. 97 (Mad.)].
Inspectoris not debarred from taking help of other persons in conducting enquiry, but he should himself consider all material thus collected, while preparing his report [Titagarh Paper Mills Co. Ltd. Vs. Union of India (1986) 59 Compo Cas. (Cal.); New Central Jute Mills Co. Ltd. Vs. Deputy Secretary (1966) 36 Compo Cas. 512 (Cal.)].
(ii) Power to Comply Production of Documents
To facilitate the task of investigation, Section 240'" casts a duty on all officers, employees and agents of the company and where the affairs of any other body corporate are investigated by virtue of Section 239, on all officers and other employees and agents of such body corporate:
(a) to preserve and to produce to an Inspector or any person authorized by him in this behalf with the previous approval of the Central Government, all books and papers of, or relating to, the company or, as the case may be, of, or relating to, the other body corporate, which are in their custody or power; and.
(b) otherwise to give to tbe Inspector all assistance in connection with the inves
tigation which they are reasonably able to give.

(iU) Power to Examine on Oath
The Inspector may examine on oath past and present officers of the company and other employees and agents (including Bankers, Legal Advisers and Auditors), and for this purpose require his personal attendance. Where an Inspector finds that a person whom he has no power to examine on oath, ought to be so examined, he may apply to the Central Government for necessary orders. Notes of any such examination are to be taken in writing and signed by the person examined and may be used in evidence against him.
Any refusal to produce any books or papers required by an Inspector or refusal to furnish information or to appear before him or refusal to sign notes of any examination renders a person liable to imprisonment for a term which may extend to 6 months or with fine which may extend to Rs. 20,000,. or with both and also with a further fine which may extend to Rs. 2,000 for every day after the first during which the failure or refusal continues.

(iv) Power of Seizure of Documents
Section 240-A of the Act provides that where an Inspector has reasonable grounds to believe tha t relevant books or papers maybe destroyed / falsified / altered or secreted, he may make an application to a Magistrate and obtain an order for seizure of such books and papers. The order may authorise him to enter the place, where such books and papers are kept, to search the place and seize them. At the conclusion of the investigation, he must return these books and papers. Before returning the books, the Inspector can place identification marks on them or any parts thereof.
* As amended by the Companies (Amendment) Act, 2000.