Section 214 Security for payment of costs and expenses of investigation – Companies Act 2013

Amended and updated notes on section 214 of Companies Act 2013. Provisions and rules related to security for payment of costs and expenses of investigation.

Amended and updated notes on section 214 of Companies Act 2013. Detail discussion on provisions and rules related to security for payment of costs and expenses of investigation.

Chapter XIV (Sections 206229) of the Companies Act, 2013 (CA 2013) deals with the provisions related to Inspection, Inquiry and Investigation. Section 214 of CA 2013 provides for security for payment of costs and expenses of investigation.

Recently, we have discussed in detail section 213 (Investigation into company’s affairs in other cases) of CA 2013. Today, we learn the provisions of section 214 of Companies Act 2013.

The provisions of section 214 are effective from 1-April-2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 214 of the Companies Act 2013 read with the Companies (Inspection, Investigation and Inquiry) Rules, 2014.

Name of ActThe Companies Act 2013
Enacted byParliament of India
Administered byMinistry of Corporate Affairs (MCA)
Number of Chapters29
Number of Sections484 (470-43+57)
Number of Schedules7
You are reading:
Chapter No.XIV
Chapter NameInspection, Inquiry and Investigation
Section No.214
Section NameSecurity for payment of costs and expenses of investigation
Monthly Updated EditionCompany Law PDF

Section 214 of Companies Act 2013: Security for payment of costs and expenses of investigation

Section 214 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.

Where an investigation is ordered by the Central Government in pursuance of clause (b) of sub-section (1) of section 210, or in pursuance of an order made by the Tribunal under section 213, the Central Government may before appointing an inspector under subsection (3) of section 210 or clause (b) of section 213, require the applicant to give such security not exceeding twenty-five thousand rupees as may be prescribed, as it may think fit, for payment of the costs and expenses of the investigation and such security shall be refunded to the applicant if the investigation results in prosecution.


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