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2017 (8) TMI 759 - Tri - Companies LawReport of the Statutory Auditor contains material which tantamounts to personal vilification and character assassination and has little relevance to the financial statements of the company as prepared by him - Held that:- No doubt, every member is entitled to a true and correct picture of the affairs relating to the business of the company, but not extraneous to the same. There are allegations and counter allegations made by both the parties which are subjudice before various courts. While it may be worthwhile to mention the pendency of lis at the instance of both the parties in the Auditor's/Director's report, it would not be prudent to suggest conclusive findings on facts while the matters are sub-judice. We are also unable to appreciate the Respondent's arguments that if the incorporated remarks be defamatory in nature, the recourse to seek remedial measures by way of damages or criminal action would be open to the petitioner/applicant. It does not stand to reason as to why any petitioner should not be protected by courts if they have been vigilant to take pre- emptive steps rather than first being made to suffer despite seeking protection, only to be told to suffer first and then move the court for adjudication for any cause of action that may arise after the damage has been done. That would indeed be a travesty of justice. We arc therefore of the opinion that while the respondents shall go ahead with convening of the AGM called for on the 16th July, 2017 at the appointed time, all derogatory remarks of a personal nature, having no relevance on the financial statements shall stand deleted/expunged from the Auditor's/Director's report.
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