Forensic examination of disputed company records is permissible when forgery is pleaded in oppression and mismanagement disputes.
Where forgery or fabrication of statutory records is pleaded in an oppression and mismanagement dispute, the NCLT may exercise its procedural powers under the Companies Act, 2013 and NCLT Rules, 2016 to require production of documents and, for recorded reasons, refer disputed records for forensic examination. The tribunal's authority is supported by natural justice and the need for effective fact-finding in aid of adjudication. The pleadings in this matter were found to include allegations of forged signatures and disputed documents relating to financial statements, a power of attorney and PAN cards, so the forensic reference was within the scope of the case and the appellate interference was unwarranted.
Issues: (i) Whether the Tribunal could direct production of documents and refer disputed records for forensic examination in proceedings under the Companies Act, 2013 and the NCLT Rules, 2016. (ii) Whether the allegation of forgery of signatures and documents was pleaded in the main company petition.
Issue (i): Whether the Tribunal could direct production of documents and refer disputed records for forensic examination in proceedings under the Companies Act, 2013 and the NCLT Rules, 2016.
Analysis: The Tribunal's powers under Section 424 of the Companies Act, 2013 are guided by principles of natural justice and include power to regulate procedure and require production of documents. Rule 43 of the NCLT Rules, 2016 specifically permits the Bench to require further documentary or other evidence and, where forgery or fabrication of statutory records is raised in an oppression and mismanagement petition, to allow forensic examination of disputed records for recorded reasons. On the facts, the disputed signatures on the financial statements, power of attorney and PAN cards justified a fact-finding exercise to assist adjudication of the pending petition.
Conclusion: The Tribunal had the statutory power to direct production of documents and forensic examination, and the direction was valid.
Issue (ii): Whether the allegation of forgery of signatures and documents was pleaded in the main company petition.
Analysis: The record showed that the respondent had pleaded forgery in relation to the financial statements and had also raised the issue concerning the power of attorney and related documents. The objection that forgery was not pleaded was not accepted, as the pleadings and surrounding material disclosed a dispute concerning the authenticity of the signatures and documents. The reference to the documents for forensic examination was therefore not beyond the scope of the case pleaded before the Tribunal.
Conclusion: The allegation of forgery was pleaded, and the Tribunal committed no error in acting upon it.
Final Conclusion: The appellate interference was unwarranted because the impugned forensic direction was within jurisdiction and supported by the pleadings and record.
Ratio Decidendi: Where forgery or fabrication of statutory records is pleaded in an oppression and mismanagement dispute, the Tribunal may invoke its procedural powers to call for documents and order forensic examination in aid of natural justice and effective adjudication.