Oppression and mismanagement relief can include forensic audit and audit committee, despite an arbitration objection.

In an oppression and mismanagement petition under sections 241 and 242 of the Companies Act, 2013, the Tribunal held that interim measures such as appointment of an independent forensic auditor and constitution of an audit committee can be granted in aid of the company petition. It further held that such relief is not displaced by a request to refer the dispute to arbitration under section 8 of the Arbitration and Conciliation Act, 1996. Citing concerns about the company's statutory records and the need to meet the ends of justice, the Tribunal directed the forensic audit, supervisory arrangements, and equal sharing of the auditor's costs.

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Issues: Whether, in a petition alleging oppression and mismanagement, the Tribunal could grant interim relief appointing an independent forensic auditor and constituting an audit committee, and whether such relief could be defeated by resort to arbitration.

Analysis: The petition was filed under sections 241 and 242 of the Companies Act, 2013, and the reliefs sought were in aid of the company petition. The Tribunal held that such reliefs are available within the framework of those provisions and cannot be displaced by the respondents' invocation of section 8 of the Arbitration and Conciliation Act, 1996. In view of the apprehensions regarding the statutory records and the need to meet the ends of justice, the Tribunal accepted the request for independent forensic audit and related supervisory arrangements.

Conclusion: The interim application was allowed in favour of the petitioners by directing appointment of an independent forensic auditor, constitution of an audit committee, and equal sharing of the auditor's costs.

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