Expenses of investigation (Section 225 of the Companies Act, 2013) :

Section 225 of the Companies Act, 2013 lays down the following provisions in respect of expenses of investigation:

(i) As per sub-section (1), the expenses of, and incidental to, an investigation by an inspector appointed by the Central Government under this Chapter (Chapter XIV- Inspection, Inquiry and Investigation) other than expenses of inspection under section 214 (Security for payment of costs and expenses of investigation) shall be defrayed in the first instance by the Central Government, but shall be reimbursed by the following persons to the extent mentioned below, namely:—

(a) any person who is convicted on a prosecution instituted, or who is ordered to pay damages or restore any property in proceedings brought, under section 224, to the extent that he may in the same proceedings be ordered to pay the said expenses as may be specified by the court convicting such person, or ordering him to pay such damages or restore such property, as the case may be;

(b) any company or body corporate in whose name proceedings are brought as aforesaid, to the extent of the amount or value of any sums or property recovered by it as a result of such proceedings;

(c) unless, as a result of the investigation, a prosecution is instituted under section 224, — (1) any company, body corporate, managing director or manager dealt with by the report of the inspector; and

(2) the applicants for the investigation, where the inspector was appointed under section 213,

to such extent as the Central Government may direct.

(ii) Any amount for which a company or body corporate is liable under clause (b) above shall be a first charge on the sums or property mentioned in that clause [Sub section (2)].