AI Drafter 
TaxTMI 
TaxTMI 
2026 (1) TMI 285
X X X X Extracts X X X X
X X X X Extracts X X X X
....l Company Law Tribunal, New Delhi in IA No.29/2022 in Company Petition No.51 of 2021. 2. Vide the impugned order, while exercising its powers under Rule 11 of the NCLT Rules, 2016 the Ld. NCLT had appointed a Forensic Auditor to conduct an investigative audit and draw up the accounts of Respondent No.2 company herein of the last three years, preceding the date of filing of petition under Section 241-242 of the Companies Act, 2013. 3. The Forensic Auditor has also been directed to identify any misappropriation or irregularity in the financial statements of the Company, taking into account the averments of both parties in the said Petition. Furthermore, the Impugned Order directs a forensic audit of the books of accounts, bank accounts,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd Shipping Co. Ltd., [1969 SCC OnLine Cal 22], the courts should not grant interim relief to enable fishing expeditions for evidence in the hope of building a case. Heard 7. Before proceeding further it would be appropriate for us to look into the impugned order which read as under:- 19. The main company petition was filed before this Tribunal by the Petitioner seeking directions against the Respondents for alleged oppression and mismanagement. The present interim application has been filed alleging financial irregularities by Respondents Nos. 2 to 5 in running of Respondent no. l company, and misappropriation of funds of the Respondent No.1 Company and seeking direction for appointment of 'Forensic Auditor for audit into t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nts, issuance of bogus vouchers and payments. These allegations and counter allegations by petitioner and respondents respectively can be ascertained only by conducting a forensic audit by an independent auditor to bring out the truth with regard to running of the operation of the Respondent No.1 Company in order to proceed further with the main company petition filed u/s. 241-242. We are of the opinion that allowing the instant application for conducting of forensic audit of the Respondent No. l Company and calling for the report of forensic auditor will enable this Tribunal to appreciate the issue on the basis of an independent report so as to ensure the fair and just adjudication of the petition filed u/s. 241-242 with due regard to righ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cised by the Ld.NCLT so as to appoint a Forensic Auditor, to enable it to pass judgement. 12. The question is such discretion of the Ld NCLT can be toppled with by the Appellate Court if two views are possible. 13. In Wander Ltd and Another Vs Antox India P Ltd, 1990 (Supp) Supreme Court Cases 727 the Court held as follows: 13. On a consideration of the matter, we are afraid, the Appellate Bench fell into error on own important propositions. The first is a misdirection in regard to the very scope and nature of the appeals before it and the limitations on the powers of the Appellate Court to substitute its own discretion in an appeal preferred against a discretionary order. The second pertains to the infirmities in the ratioci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....an Joseph : ... These principles are well established, but as has been observed by Viscount Simon in Charles Osention & Co. v. Johnston the law as to the reversal by a court of appeal of an order made by a judge below in the exercise of his discretion is well established, and any difficulty that arises is due only to the application of well settled principles in an individual case. The appellate judgment does not seem to defer to this principle. 14. Further in LAS Goldair Handling (Bagdogra) Pvt Ltd Vs Goldair Handling SA and Another 2024 SCC OnLine NCLAT 1868 this Tribunal held as under:- 12. In view of the above we find no infirmity in the impugned order before us, specially in view of the fact only oral subm....