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TMI Blog2020 (10) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... the following order: I. While considering the present situation to meet the ends of justice, this Tribunal allows the appointment of an Independent Forensic Auditor to complete the auditing work within 60 days from the date of appointment of the auditor by this Bench. II. It is also directed to constitute an audit committee consisting of two directors from the Petitioner's side and two from the Respondent's side other than Respondent No. 2 for helping and co-operating in completing the independent audit. III. The costs of the forensic auditor should be borne by both the parties equally. It is also directed both the parties to suggest the list of persons to perform as an Independent Forensic Auditor before 19.06.2020. Lis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner stating that, it was decided to authenticate the records maintained at the registered office and the corporate office of the respondent company on 03.03.2020 and on 04.03.2020 respectively. However, as the Advocate Commissioner was engaged in other case in the Supreme Court on that particular days, so the same was cancelled and accordingly informed the parties. Later it was re-scheduled to 14.03.2020 and 16.03.2020 and that was informed to the parties through letter dated 09.03.2020. 4. On 14.03.2020 the Advocate Commissioner proceeded to the corporate office of Kochi as per schedule, but the officers there expressed their helplessness to produce the records since the officers have already left to Calicut to make arrangements fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e acts of the Respondents, petitioners filed an urgent interim application (IA/64/KOB/2020) on 18.05.2020 stating that Respondents Nos. 2 to 8 have not only undertook the acts of oppression and mismanagement but also flouted the directions of this tribunal. Therefore, the petitioner sought an interim relief for appointment of independent financial auditor and removal of Respondent Nos. 2 to 8 from the management of the Company. Hence the matter was put up on 26.05.2020 and I have heard the arguments via video conferencing. 8. The petitioners stated that they have grave and apparent apprehensions that the Respondent Nos.2 to 8 might undertake steps to remove/ destroy/ falsify the necessary statutory records of the Respondent No. 1 Company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nticate the statutory records of the company. Petitioners were supposed to inspect the books of accounts and statutory records. Whereas as per the 2nd prayer the Advocate Commissioner was directed to authenticate the statutory records only. The Tribunal was aware that directors alone have the right of inspection and no one else. There was an unambiguous distinction between inspection of books of accounts and authentication of statutory records. 12. The Respondents further stated that as stated in para No. 4(ii) of the order of this Tribunal dated 17.02.2020 their prayer is to ascertain the amounts illegally appropriated and loss thereby caused to the Company. The burden is upon the Petitioners to show that Respondent Nos.2 to 8 had illeg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is further stated that not only that the Petitioners have suppressed material facts about their condemnable conduct as directors of the company and their failure to provide cash and other collateral to the company's lenders whereby they have acted against the interests of the company, they have not been able to provide any shred of evidence to support their allegations. 17. It is further stated that the Petitioners are aware of this deficiency and they are searching for evidence and for that purpose they appear to be pressing for the above relief now using the report of the Advocate Commissioner, where there is absolutely no justification at all. 18. It is the further contention in the counter that a suggestion was made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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