Section 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 1[or under the
Insolvency and Bankruptcy Code, 2016 (31 of 2016)] 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 co mpany 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 inspecto r states that fraud has taken place in a company and due to