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2003 (1) TMI 520 - SC - Companies LawWhether the sub-classification of partnership firms stands the test of reasonableness on the touchstone of article 14? Whether it is a corporation seeking an audit of its accounts or an individual seeking a remedy in court? Held that:- Appeal dismissed. The classification between proprietary and partnership firms is arbitrary and unfair, and accordingly falls on the anvil of article 14 of the Constitution. Either proprietary concerns are suitable and, therefore, eligible, or they are not. If proprietary concerns of chartered accountants are really inefficient, there appears no reason why they have been made eligible to audit Government and public sector undertakings in the aforesaid States. Further, if there was a paucity of partnership firm of chartered accountants in a given State, the services of partnership firms, who were said to be efficient based in other States could be taken. Under such circumstances, we are of the view that the impugned notification does not stand the test of article 14 of the Constitution.
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