https://www.taxtmi.com/caselaws?id=437397 The Supreme Court upheld the constitutionality of Section 140(5) of the Companies Act, 2013, allowing the NCLT to take action against auditors for fraudulent conduct. The Court clarified that resignation does not terminate proceedings under Section 140(5) and directed the NCLT to continue the enquiry. The Court also reinstated the prosecution based on the SFIO report, emphasizing the completeness of the investigation. The appeals by the Union of India were allowed, while those by Deloitte and its partners were dismissed, affirming the validity of Section 140(5) and rejecting the notion that resignation halts proceedings. en-us Wed, 03 May 2023 00:00:00 +0530 Fri, 05 May 2023 14:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437397 The Supreme Court upheld the constitutionality of Section 140(5) of the Companies Act, 2013, allowing the NCLT to take action against auditors for fraudulent conduct. The Court clarified that resignation does not terminate proceedings under Section 140(5) and directed the NCLT to continue the enquiry. The Court also reinstated the prosecution based on the SFIO report, emphasizing the completeness of the investigation. The appeals by the Union of India were allowed, while those by Deloitte and its partners were dismissed, affirming the validity of Section 140(5) and rejecting the notion that resignation halts proceedings. Case-Laws Companies Law Wed, 03 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437397