2007 (3) TMI 375

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....1. This petition is directed against the approval granted by the Regional Director, Department of Company Affairs, Ministry of Finance, Government of India under section 224(7) of the Companies Act, 1956 (hereinafter referred to as 'the said Act') for removal of the statutory auditors (M/s. Devinder K. Jain and Associates, Chartered Accountants, New Delhi) in respect of the company KEW Precision P....

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....icating the decision of the Board to remove the petitioner as the statutory auditor inasmuch as they had lost confidence in them. On 29-7-2004, the company moved an application before the Regional Director for the approval of the Central Government. The approval was granted by virtue of the impugned order dated 25-10-2004 passed by the Central Government acting through the said Regional Director o....

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....the General Meeting, but by the Board of Directors. This decision had no effect in law other than initiating the process of removal. After the Board decided on 12-7-2004 to proceed with the removal of the auditor, the company moved an application on 29-7-2004 before the Central Government seeking its approval under section 224(7) of the said Act. This approval was required to be taken prior to the....

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....ry auditors prior to expiry of its term except under the procedure provided under section 224(7) of the said Act. The facts of the present case are entirely different. The decision that was taken on 12-7-2004 at the Board Meeting had no effect until and unless prior approval of the Central Government and subsequent confirmation in the General Meeting was granted. The decision of 12-7-2004 was only....