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2014 (7) TMI 17 - COMPANY LAW BOARD NEW DELHIAppointment of directors - Oppression and mismanagement - on account of the dispute having been pending before the Hon'ble Company Law Board, the Auditor of the company refused to continue with the audit work till the matter is resolved between the parties and therefore, the facility could not be renewed by the Bank. - Held that:- Auditor is statutorily required to audit the books of account for the financial years ending 31st March, 2012 and 31st March, 2013, as a part of his duties - Auditors to comply with the provisions of section 215 of the Companies Act, 1956, for the approval of the Balance sheets by be Board of Directors before giving the same to the Auditors. Respondent Nos 3 & 4 continued to be Directors despite the issue of their appointment under dispute pending for judicial scrutiny by this Hon'ble Board. On the same analogy, Petitioner Nos 1 & 2 continued to be Directors of the Company. Under these circumstances, the Balance sheets for the financial years ending 31st March, 2012 and 31st March, 2013, may be audited by the Auditors of the Company with due compliance of Section 215 of the Companies Act, 1956, by the Board of Directors consisting of Directors as per statutory records available with the Registrar of Companies and this will not prejudice the right of the Petitioners to challenge the appointment of Respondent Nos 3 & 4 - Decided in favour of appellants.
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