2024 (5) TMI 681 - SCH - Companies Law

Appeal Dismissed: Supreme Court Upholds NCLAT's Decision, Concluding Legal Proceedings in Favor of Respondent.

The SC dismissed the appeal, affirming the NCLAT's order dated 1 December 2023 in Company Appeal (AT) No 91 of 2023. The decision effectively upholds the ... Professional misconduct - Role of NFRA V/s ICAI on disciplinary matters of Chartered Accountants - Retrospective V/s prospective applicability of provisions as contained in Section 132 of Companies Act, 2013 as well as NFRA Rules, 2018 - Violation of Principle of natural justice w.r.t. separate division of NFRA - Role of Statutory Auditors of the Company V/s Statutory Auditors of the Branches of the company - Are Standards of Auditing (SA) mandatory or Advisory or to be treated as guidance notes to Auditors - it was held by NCLAT that 'It is of utmost importance that Auditors realise their responsibilities which is necessary not only to the company but also to the public. In view thereof, giving effect to the Impugned Orders which highlights the professional misconduct and other misconduct on the part of the appellant vis-à-vis a public listed company become quintessential so as to make public aware and enable them to make informed and sound financial decisions and investments. Any deviation to this will only result is catastrophic effect on economy of the nation and cause immense prejudice and harm to the public, shareholders and various stakeholders such as banks, lenders, and creditors.' HELD THAT:- There are no reason to interfere with the order of the National Company Law Appellate Tribunal - appeal dismissed. The Supreme Court dismissed the appeal and upheld the order of the National Company Law Appellate Tribunal dated 1 December 2023 in Company Appeal (AT) No 91 of 2023.