Case Law Details
Motel Rahans Pvt Ltd Vs JSM Devcons Pvt Ltd (NCLT Indore)
NCLT Bench in Indore has ordered the appointment of a forensic auditor to conduct a thorough audit on the assets of the corporate debtor in the case of Motel Rahans Pvt Ltd Vs JSM Devcons Pvt Ltd. The applicant sought the appointment of an independent transaction auditor to examine irregularities in specific transactions. The CoC proposed the appointment of the forensic auditor, and the NCLT ruled in favor of the audit, clarifying the role of the CoC and the responsibility of the RP in appointing professionals. RP is directed to appoint an auditor to conduct the forensic audit of the Corporate Debtor for the period referred to in the IA and the auditor would submit its report within four weeks thereafter.
FULL TEXT OF THE NCLT JUDGMENT/ORDER
IA/98(MP)2023
The prayer made in the IA reads thus:- “a) Pass necessary orders by invoking Rule 11 of NCLT Rules read with Section 25(1)(j) and Section 26 of Code and appoint an independent transaction auditor to undertake transaction (under Section 43, 45, 50 & 66) audit for period 2009-10 till ICD and submit report to Respondent No. 1 within 30 days of this order appointing such independent transaction auditor; b) Pass necessary orders directing that fee of lowest quotation received by Respondent No. 1 be paid to such auditor and such fees would form part of Insolvency Resolution Process Cost; c) Pass necessary orders directing Respondent No. 1 to file appropriate application before Adjudicating Authority within 7 days from receipt of Transaction Audit report.” As is borne out of the record, the CoC made the proposal for appointment of the Forensic Auditor, as espoused in the captioned IA.
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