Interim restraint on proposed CAG audit of private company pending determination of statutory applicability

A challenge to a proposed audit notice under the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971 raised the question whether a private company could be subjected to audit at the interim stage. The court treated the matter as one of statutory applicability and considered that the audit had not yet commenced. To preserve the position pending further hearing, interim protection was granted and the authorities were restrained from conducting the audit until the specified date or until further orders.

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Issues: Whether, at the interim stage, audit could be directed against a private company under the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971.

Analysis: The prayer for interim protection was considered in the context of the statutory scheme and the challenge to the proposed audit notice. The matter was treated as one concerning the applicability of the 1971 Act, and the commencement of the audit was noted to have been withheld. In view of the circumstances, interim protection was warranted to preserve the position until further hearing.

Conclusion: Interim restraint was granted, and the authorities were directed not to conduct the audit until the specified date or until further orders.

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