38.6c New Delhi, India, Sunday, May 26, 2024
Business

IL&FS Case: NCLAT Rejects Pleas Of IL&FS Auditors – Deloitte and KPMG

By LawStreet News Network      04 March, 2020 07:03 PM      0 Comments
NCLAT Rejects Pleas Of ILFS Auditors

Two member bench of NCLAT led by Chairman Justice S J Mukhopadhaya upheld the decision of the Mumbai bench of the National Company Law Tribunal (NCLT) and dismissed the pleas of debt ridden IL&FS auditors – Deloitte Haskins & Sells and KPMG arm BSR & Associates, challenging their impleadment in the case involving alleged fraud in IFIN, a subsidiary of IL&FS.

NCLAT, however, granted relief to both Deloitte and KPMG and other independent directors by allowing the operation of its earlier interim order passed on July 29, 2019 for two weeks.

The bench is empowered to give the decision under the Section 242 of the Companies Act 2013 mentioning the powers of the Tribunal, if, on any application made under the Section 241 of the Companies Act 2013 as the sub-section 2 of Section 241 says it forms opinion that the affairs of the company have been conducted in a manner prejudicial to the public interest.

The bench headed by Justice S.J Mukhopadhyay opined that once such opinion is formed by the Tribunal, it may pass any order as it deems fit and proper. The plea was dismissed by the bench of auditors of debt-ridden IL& FS- Deloitte Haskins and Sells and KMPG arm BSR & Associates along with independent directors tried to challenge their impediment in the case alleging the fraud in group firm IFIN.

The Ministry of Corporate Affairs (MCA) had asked NCLT to freeze the assets of former auditors in the case which involves alleged fraud in IFIN. Nevertheless, the appellant tribunal granted relief to both auditors and other independent directors by allowing the operation to the interim order passed on 29th July 2019 for two weeks. 

The development of the case was addressed by the Spokesperson of Deloitte India "We will review the written order before determining our further course of action, which may include an appeal. Auditors cannot be treated as part of the management which is responsible for managing the affairs of the company and therefore should not be charged and we will continue to present and protect its position, supported by the facts, to the relevant authorities. The firm remains committed to high standards of audit quality and ethical conduct in its professional practice”

 

Author: Asif Iqbal



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

courts-this-week-law-street-journals-weekly-round-up-of-sc-and-hcs-may-20-may-25
Trending Judiciary
Courts this Week: Law Street Journal's Weekly Round-Up of SC & HCs [May 20 - May 25]

Get the latest updates from the Supreme Court of India and the High Courts ! Here’s a round up of the week's top legal stories in a quick, easy-to-read summary.

26 May, 2024 11:25 AM

TOP STORIES

supreme-court-refuses-to-entertain-plea-for-stay-on-new-criminal-laws
Trending Judiciary
Supreme Court refuses to entertain plea for stay on new criminal laws

SC refuses plea to stay new criminal laws. Court deems the plea casual, noting laws aren't yet implemented. Petitioner withdraws. Laws effective from July 1, 2024.

20 May, 2024 12:58 PM
scba-election-result-2024-know-the-newly-elected-members
Trending Know The Law
SCBA Election Result 2024, Know the newly elected members

SCBA Election Result 2024: Senior Advocate Kapil Sibal elected President. Know the newly elected members and key office bearers leading the Supreme Court Bar Association.

20 May, 2024 03:03 PM
cannot-allow-the-game-of-hide-and-seek-for-committing-murder-of-an-unborn-child-mp-high-court
Trending Judiciary
Cannot Allow the Game of Hide and Seek for Committing Murder of an Unborn Child: MP High Court [Read Order]

MP High Court denies abortion for minor rape victim, condemns misuse of legal authority to terminate pregnancy and prevent justice.

20 May, 2024 03:52 PM
pune-porsche-hit-and-run-bail-granted-to-17-year-old-in-under-14-hours-asked-to-write-essay
Trending Judiciary
Pune Porsche Hit & Run: Bail Granted to 17 Year Old in Under 14 Hours, Asked to write essay

Bail granted to 17-year-old in Pune Porsche hit-and-run case within 14 hours. Conditions include educational tasks, supervision, and counseling. Incident killed two.

20 May, 2024 04:30 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email