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2018 (12) TMI 177 - AT - Companies LawDirection of re-audit of the accounts - allegation of Oppression and Mismanagement - Held that:- When the audit had taken place, without finding at least prima facie from the record that there was error in the audit or that it had not been properly done, directing re-audit was not correct. We are not impressed by the arguments of the learned counsel of the Respondents that only because the notice and agenda for that EOGM dated 07. 12. 2017 used the word “appointment” and not “approval”, the appointment should be treated as on 07. 12. 2017. The law requires and the Board Meeting dated 01. 11. 2017 in which the appointment was done shows that the appointment was done on 01. 11. 2017 which was subject to the approval of the general body. Respondents is raising various grievances regarding the accounts. We find that the grievances being raised may be raised at the time of final hearing of the Company Petition. Learned counsel for the Appellant is submitting that because of the present Impugned Order the Respondent is raising contentions and disputes even with regard to the subsequent Audit of 2017-18 claiming that unless 2016-17 gets settled, the accounts of 2017-18 cannot be looked into. A litigation may remain pending for years and dispute relating to Accounts of a particular year may be raised. It does not mean that for years to come finalization of Accounts should be kept suspended or in doubts. For the above reasons, the Appeal is allowed. The Impugned Order directing re-audit of the accounts is quashed and set aside. The Respondent would be at liberty to question the audit done of 2016-17 at the time of final hearing of the Company petition. The accounts of subsequent Financial Years may be settled but would be subject to the decision of the Company Petition. Disposed off accordingly. No Costs.
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