New Delhi, May 21 -- The National Company Law Appellate Tribunal (NCLAT) has held that the National Company Law Tribunal (NCLT) could not directly order an investigation by the Serious Fraud Investigation Office (SFIO) and clarified that such power rests with the Central Government under the Companies Act.

While partly allowing an appeal against an NCLT order, the Appellate Tribunal modified the direction for SFIO investigation and instead referred the matter to the Secretary, Ministry of Corporate Affairs, for investigation through an Inspector or Inspectors in accordance with law.

A Bench of Justice Mohd. Faiz Alam Khan and Technical Member Naresh Salecha, while agreeing with submissions made by advocate Anuj Tiwari for the appellants...