NCLAT Dismisses Appeal Against Forensic Auditor Appointment as Infructuous
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- Last Updated on 13 June, 2025
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Case Details: Mrs. Rekha Prabhahar v. Elv Supply Chain Solutions & Services (P.) Ltd. - [2025] 174 taxmann.com 1147 (NCLAT-Chennai)
Judiciary and Counsel Details
- Sharad Kumar Sharma, Judicial Member & Jatindranath Swain, Technical Member
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P.S. Suman, Adv. for the Appellant.
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Ms Durga Bhatt, Adv. for the Respondent.
Facts of the Case
In the instant case, in proceedings held under sections 241 and 242, the NCLT appointed a forensic auditor to conduct an audit into the books/records/documents and details of the company’s assets. The appellant questioned the propriety of the order passed by the NCLT appointing a forensic auditor.
It was noted that a forensic auditor had already been appointed, and he had submitted his report, to which the appellant had sought time to file an objection.
NCLAT Held
The NCLAT observed that the directions issued by the Tribunal for conducting a forensic audit are not detrimental to the interest of either party to the company petition, as it would facilitate arriving at a definite conclusion with regard to the veracity of the books of account, which is the subject matter of consideration in the proceedings under sections 241, 242, and 59 of the Companies Act, 2013.
The NCLAT held that since no cause of action had survived for the appellant against the impugned order appointing a forensic auditor, the appeal had become infructuous for all practical purposes.
List of Cases Reviewed
- Order of NCLT(chennai) in CP/15(CHE)/2023,dated 21.06.2024 (para 8) affirmed
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