Case Law Details
Union of India Vs Mr. Mukesh Maneklal Choksi (National Company Law Tribunal, Mumbai Bench)
Since Respondent No 1, Mr Mukesh Maneklal Choksi, Statutory Auditor , colluded with the Chairman/Director of R-2 company and has given a false Audit certificate relating to the Profit & Loss Account and Balance Sheet of the R-2 company, without even examining and verifying the books of accounts, and the Statutory Auditor has not given any plausible explanation for such irresponsible fraudulent activities.
Therefore under 2nd Proviso to Section 140(5) of the Companies Act, 2013, R1, Mr Mukesh Maneklal Choksi shall not be eligible to be appointed as an Auditor of any company for a period of 5 years from the date of passing this order, and the auditor shall also be liable for action under Section 447 of the Companies Act, 2013.
Further by exercising powers under section 147(3)(i) of the Companies Act 2013, we also direct the Statutory Auditor Mr Mukesh M. Choksi to refund the remuneration received by him, during the period he acted as Auditor, back to the Company.
FULL TEXT OF THE NCLT ORDER
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