Section 429: Power to seek assistance of Chief Metropolitan Magistrate, etc
This section allows the Tribunal to seek assistance from certain authorities to take control of a company's assets and documents, and ensures their actions in doing so are not questioned.
The section, clause by clause
What the section says
In plain terms
(1)The Tribunal may, in any proceedings for winding up of a company under this Act or in any proceedings under the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in order to take into custody or under its control all property, books of account or other documents, request, in writing, the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector within whose jurisdiction any such property, books of account or other documents of such company under this Act or of corporate persons under the said Code, are situated or found, to take possession thereof, and the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector, as the case may be, shall, on such request being made to him,—
The Tribunal can ask the Chief Metropolitan Magistrate, Chief Judicial Magistrate, or District Collector to take control of a company's property, books, or documents in writing, and they must comply with this request.
(1)(a)take possession of such property, books of account or other documents; and
(1)(b)cause the same to be entrusted to the Tribunal or other persons authorised by it.]
(2)For the purpose of securing compliance with the provisions of sub-section (1), the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector may take or cause to be taken such steps and use or cause to be used such force as may, in his opinion, be necessary.
The Chief Metropolitan Magistrate, Chief Judicial Magistrate, or District Collector can take necessary steps and use force to ensure compliance with the Tribunal's request.
(3)No act of the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector done in pursuance of this section shall be called in question in any court or before any authority on any ground whatsoever.
Any actions taken by the Chief Metropolitan Magistrate, Chief Judicial Magistrate, or District Collector under this section cannot be questioned in any court or by any authority.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 429 (w.e.f. 15-11-2016).
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.