HC Allows Challenge to Audit Report Despite Involvement in Auditor Appointment

Uday J Desai & Ors Vs Union of India & Ors (Delhi High Court) Introduction In a landmark ruling, the Delhi High Court in the case of Uday J Desai & Ors Vs Union of India & Ors, overturned a previous decision and stated that a party is not precluded from challenging an audit report solely based on their participation in the appointment of that Auditor. The Court’s ruling has considerable implications for both the auditing industry and borrowers. Analysis The High Court held that just because the appellants had agreed to the appointment of a certain auditor and participated...