98. Powers of Registrar under the Companies Act, 1956.

The companies act, 1956 through section 234 grants certain powers to the registrar of companies. He can call for further information or explanation by written order in respect of any document submitted to the registrar. Officers of the company are bound to supply such information. If the registrar is not satisfied with the information provided, the act powers the Registrar to issue an order for production of books and papers within prescribed time.

Such information provided by the company will be annexed to the document submitted by the company and it will be available for inspection, taking extracts and getting copies just like taking extract of the documents originally filed by the company.

On perusal of the received documents, if the Registrar is of the opinion that the state of affairs of the company is unsatisfactory or the documents submitted do not disclose full and fair statement, the Act empowers Registrar of Companies to make report to Central Government.

If any contributory or creditor or other person interested in the business of the company reports and places evidence before the Registrar of Companies that the business of the company is being carried on in fraud of its creditors or other persons, it can issue written order to company to supply information and explanation within specified time.

However the penal provisions for non compliance of Registrar of Companies order to produce books and papers is limited to a fine of Rs. 500.00 plus Rs. 500.00 for every day till the offence continues. The Court can order the company for production of books to the Registrar.

Registrar can make an application to First Class Magistrate to seize the books and papers of the company, if he has reasonable grounds to believe that the books and papers relating to the affairs of the company may be destroyed, mutilated, altered, falsified or secreted. Such search and seizure must be according to the provisions of Code of Criminal Procedure. The seized papers must be returned within 30 days.