Chapter XIV - Inspection, Inquiry and Investigation
Section 215
Section 215: firm, body corporate or association not to be appointed as inspector
Section 215 is a one-line rule: no firm, body corporate or other association can be appointed as an inspector. Inspectors under Chapter XIV must therefore be individuals.
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This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
No firm, body corporate or other association shall be appointed as an inspector.
Introduction
The rule keeps personal responsibility for an investigation with a named person. An audit firm, LLP or company cannot itself be the inspector, though an individual partner or employee may be appointed in their own name.
Section 215 commenced on 1 April 2014 under S.O. 902(E). The India Code shows no amendment, and its text matches the 2013 Gazette.
Key takeaways
Individuals only
A firm, body corporate or other association cannot be an inspector.
Applies across Chapter XIV
It covers appointments of inspectors in investigations under the Chapter.
Check appointments
An order naming an entity as inspector is open to challenge.
The rule
No firm, body corporate or other association shall be appointed as an inspector.
Practical preparation
When an inspector is appointed, confirm that the order names an individual; raise any defect through counsel promptly.
Investigation provisions are applied case by case by the Central Government, the Tribunal, the Special Court or the inspector; this guide explains the statutory text and is not a substitute for advice on a live matter.
Practical checklist
Do
- Read the appointment order to see who the inspector is.
Avoid
- Do not deal with an entity as if it were the inspector.
Illustrative example
Hypothetical: checking an appointment order
A company receives an order appointing an inspector to investigate its affairs.
Review
Counsel checks that the order names an individual.
Proceed
The company cooperates with the named inspector.
Outcome
- The company confirms the appointment complies with section 215.
Glossary
- Inspector
- A person appointed under Chapter XIV to investigate the affairs of a company.
- Body corporate
- Defined in section 2(11); it includes a company incorporated outside India.
Frequently asked questions
Can a chartered accountant firm be appointed as inspector?
No. A firm cannot be appointed; an individual can.
Does section 215 apply to SFIO investigations?
Section 215 applies to the appointment of an inspector under the Act. SFIO investigations are assigned to the SFIO under section 212.
Need help applying this provision to your situation?
Contact BizeneedLast updated 12 October 2026