2022 (12) TMI 666 - AT - Companies Law

Payment of Audit Fee to auditor of the company - fixation of audit fee - NCLT directed the administrator to pay Rs. 12 Lakh with GST - HELD THAT - As far as the present case is concerned, this Tribunal , on going through the impugned order passed by the National Company Law Tribunal, Kochi Bench, Kochi comes to an inevitable , irresistible and inescapable conclusion, that the said Order , suffers from Legal infirmity , in that, the contents of letter dated 01.06.2022 of the Babu A. Kallivayalil Co., Chartered Accountants were not adverted to b y the Tribunal in detail, especially, touching upon, the aspect of Fees Matter restored back for re-adjudication.

Summary

Issues involved:
- Challenge to the impugned order regarding the auditor's fee
- Lack of detailed discussion on the contents of a crucial letter in the impugned order
- Legal infirmity in the order due to inadequate evaluation of relevant materials
- Requirement of a reasoned order by the Tribunal
- Setting aside of the impugned order and directions for a fresh disposal of the case

Analysis:
The Appellant challenged the impugned order related to the auditor's fee, arguing that the amount determined was unreasonable. The Tribunal noted that the order lacked a detailed discussion on a specific letter's contents, leading to a legal infirmity. It emphasized the necessity of a reasoned order for justice and highlighted the importance of evaluating all relevant materials. Consequently, the Tribunal set aside the impugned order to ensure fairness.

The Tribunal directed the lower court to restore the case to its file and dispose of it de novo, following principles of natural justice. It emphasized the need for a thorough reconsideration of the case, providing adequate opportunities to all parties. The Tribunal aimed for a prompt resolution within four weeks, free from any influence from its own observations in the current appeal.

Furthermore, the Tribunal clarified that the consideration of appointing a new auditor was unnecessary due to setting aside the impugned order. It stressed the importance of preventing any injustice and promoting substantial justice. The lower court was instructed to allow parties to present all factual and legal arguments before issuing a fresh, reasoned order on the matter.

In conclusion, the Tribunal disposed of the appeal without costs, highlighting the need for a detailed and fair assessment in legal proceedings to uphold justice and ensure a just outcome for all parties involved.