Auditors cannot escape being probed if they resign; Section 140(5) of Companies Act constitutional: SC

Union of India and Another Vs Deloitte Haskins and Sells LLP & Anr (Supreme Court of India) Second proviso to section 140(5) of Companies Act further provides that an auditor, whether individual or firm, against whom final order has been passed by the Tribunal under section 140(5) shall not be eligible to be appointed as an auditor of any company for a period of five years from the date of passing of the order and the auditor shall also be liable of such action under section 447 of the Companies Act. Therefore, as such, second proviso to Section 140(5) can be said to be a substantive provi...