Serious Fraud Investigation Office v. Rahul Modi - Important Supreme Court Judgment 2019
Serious Fraud Investigation Office v. Rahul Modi - Important Supreme Court Judgment 2019 On 27th March, 2019, in the case of Serious Fraud Investigation Office v. Rahul Modi and Another. Etc. [Criminal Appeal Nos. 538-539 of 2019], the Supreme Court primarily examined the “scope, extent and the purpose of Section 212 of the Companies Act, 2013” and, “in particular, whether the compliance of sub-section (3) of Section 212 of the Act is mandatory or directory.” Having regard to the scheme of the Act underlined in Chapter XIV (Sections 206 to 229 of the Act) dealing with the matters relating to inspection, inquiry and investigation of the companies in juxtaposition with Chapter XXIX which prescribes the punishment/penalties for commission of various offences specified under the Act, the Supreme Court held that the compliance of sub-section (3) of Section 212 of the Act is essentially directory. The Supreme Court observed that “it cannot be said that the prescription of period within which