UDAY UMESH LALIT,J. - (1.) Leave granted.
(2.) These Appeals challenge the correctness of the common interim order dated 20.12.2018 passed by the High Court of Delhi at New Delhi in Writ Petition (Crl.) Nos.3842 and 3843 of 2018.
(3.) In exercise of powers conferred by Section 212(1)(c) of the Companies Act, 2013 ( "2013 Act ", for short) and under Section 43(2) and (3)(c)(i) of the Limited Liability Partnership Act, 2008 ( 2008 Act ", for short), the Central Government vide order No.07/115/2018/CL-II (NWR), directed investigation into the affairs of Adarsh Group of Companies and LLPs ( 'The Group ', for short) by Officers of Serious Fraud Investigation (SFIO) as nominated by Director, SFIO. The relevant part of the Order dated 20.06.2018 was as under:- "Whereas the Central Government is empowered under Section 212(1)(c) of the Companies Act, 2013 (the Act) to order investigation into the affairs of a company in public interest by the Serious Fraud Investigation Office (SFIO). 2. And whereas the Central Government is also empowered to order investigation into the affairs Limited Liability Partnerships (LLPs) under Section 43 (2) and (3) (c) (i) of the Limited Liability Partnership Act, 2008. 3. AND whereas on the basis of opinion formed by the Central Government, it has been decided to investigate the affairs of following companies:- JUDGEMENT_138_LAWS(SC)3_2019.jpg JUDGEMENT_138_LAWS(SC)3_2019(1).jpg 4. Now, therefore, in exercise of powers conferred under Section 212 (1) (c) of the Companies Act, 2013 and under Section 43 (2) and (3) (c) (i) of the LLP Act, 2008 the Central Government hereby orders investigation into the affairs of the above named companies and LLPs to be carried out by officers of the Serios Fraud Investigation Office (SFIO) as nominated by Director, SFIO. 5. The SFIO shall investigate into following areas (above mentioned companies and LLPs) in addition to any other issues that it may come across during the investigation. (i) To ascertain and unearth rotation of funds or identification of quantum of diversion of funds of siphoning including beneficiaries thereof: (ii) To identify instances of mismanagement, negligence or fraud; (iii) To ascertain the role of auditors, KMPs or independent directors or any other person in the alleged fraud: (iv) To examine role of any other entity used as conduit in the alleged fraud; (v) To identify non-compliance of the statutory provisions of the Act and its impact on Corporate Governance. 6. That the Inspector(s) so appointed shall exercise all powers available to them under Section 217 of the Companies Act, 2013 and Chapter IX of LLP Act, 2008. The inspector(s) shall complete their investigation and submit their report to the Central Government within a period of 03 (Three) months from the date of issue of this order. 7. This order is issued for and on behalf of the Central Government. Sd/- (Santosh Kumar) Joint Director ";