Topic 48 Inspector Powers Section46

THE LEGAL BRIDGE

Judiciary Examination Study Material

Topic 48

Powers of Inspectors — Section 46

Examination on Oath, Document Production & Constitutional Safeguards

Pillar 6 — Investigation & Regulatory Powers (Sections 43–57)

Module Overview

Section 46 confers extensive powers on appointed inspectors — the power to examine any person connected with the LLP on oath, and to demand production of books, documents and records. This topic provides a comprehensive analysis of these powers, the five categories of persons who can be examined, consequences of non-compliance, and Article 20(3) constitutional safeguards.

48.1 Section 46 — Power to Examine Persons on Oath

Section 46(1)

An inspector appointed under this Chapter may examine on oath any officer of the LLP, any person who is or has been a designated partner, any person who is or has been a partner, any person who has been employed with the LLP, and any person whom the inspector has reasonable grounds to believe has relevant information.

48.2 Five Categories of Persons Who Can Be Examined

Category	Notes
Officers of the LLP	Any person holding an official position — managers, accountants, legal officers
Current or former designated partners	Section 46 covers both — resignation does not escape examination
Current or former partners	Both current and former partners can be examined
Current or former employees	Any employee — no minimum seniority threshold
Any other person with relevant information	Very broad — includes auditors, bankers, clients, suppliers

48.3 Key Powers Under Section 46

Examination on oath (46(1)): Inspector administers oath; person must answer truthfully.
Require production of documents (46(2)): Inspector can require any person to produce books of account and records within a specified time.
Certified copies (46(3)): Inspector entitled to take certified copies of all documents produced.
Written answers (46(4)): Inspector can require written answers to questions — creating a documentary record.

48.4 Consequences of Non-Compliance

Non-Compliance	Consequence
Refusal to appear	Contempt; NCLT can punish
Refusal to answer	Contempt; NCLT can direct compliance
False answers on oath	Perjury — criminal offence under BNS/IPC
Refusal to produce documents	Contempt; inspector can apply for Section 47 seizure order
Destruction/tampering after notice	Obstruction under Section 53 — imprisonment + fine

48.5 Article 20(3) — Constitutional Safeguard

Article 20(3) Protection in Section 46 Examinations

Article 20(3): "No person accused of any offence shall be compelled to be a witness against himself." This constitutional right against self-incrimination applies to Section 46 examinations.

Practical effect: A person may answer generally but can decline to answer specific questions that would directly incriminate them in a criminal charge. A blanket refusal to answer is NOT protected — only specific self-incriminating answers attract Article 20(3) protection.

⚖ M.P. Sharma v. Satish Chandra 1954 SCR 1077 (SC)

Held: The Supreme Court held that the right against self-incrimination under Article 20(3) extends to compelled production of incriminating documents — not just verbal testimony. Physical seizure of documents under judicial warrant does not violate this right.

Principle: Article 20(3) protects against testimonial compulsion and compelled production of incriminating documents.

📌 EXAM TIP: Section 46 powers — exam checklist: (1) Five categories of persons who can be examined — including ANY person with relevant information; (2) Former partners: YES, can be examined; (3) Article 20(3) applies — specific self-incriminating answers; (4) Section 46 = examination + production demands; Section 47 = physical seizure (requires JM order — DIFFERENT sections).

Key Point	Core Content
Section 46(1)	Examination on oath — five categories incl. any person with relevant info
Section 46(2)	Require production of books and documents
Section 46(3)	Certified copies of documents produced
Non-compliance	Contempt; perjury for false answers; obstruction for tampering
Article 20(3)	Self-incrimination protection — specific answers, not blanket refusal
Section 46 vs Section 47	46: demands/examination (no JM); 47: physical seizure (JM order required)