Retrospective jurisdiction of regulator challenged; effect on auditor liability, standards compliance and sanctions under companies law.
Allegations of professional misconduct assert auditors failed to comply with statutory audit obligations, disclose material facts, exercise due diligence, obtain necessary information, and identify departures from accepted audit procedures. Appellants challenge the regulator's retrospective jurisdiction, invoke constitutional protection against retrospective penalization, and allege procedural breaches of natural justice; the regulator maintains jurisdiction, contends it afforded hearing opportunities, and asserts substantive non compliance with Standards on Auditing.

Secured creditor priority upheld; asset protection costs initially borne by creditors and rival claims sent to the specialized tribunal for adjudication.
The court transferred disputes over assets of a company in liquidation to the specialized insolvency tribunal for expedited adjudication, affirmed the priority of secured creditors while permitting other claimants to present possessory or contractual claims before the tribunal, and ordered that interim asset protection expenses be initially borne by secured creditors but remain recoverable as part of their claims.

Auditor responsibility reinforced: regulatory findings against audit failures stress strict adherence to auditing standards and sanctions.
NFRA found a statutory auditor guilty of professional misconduct for failures to comply with Standards on Auditing, including inadequate procedures to verify revenue, lack of physical inventory verification, insufficient going concern assessment, deficient materiality application, and inadequate communication with Those Charged with Governance, and applied regulatory sanctions to reinforce auditor responsibilities in preserving financial reporting integrity.

Oppression and mismanagement: protection of initial shareholding and valuation to enable fair exit for aggrieved shareholder.
The petition alleged majority conduct that altered the petitioner's intended equity stake and diverted company funds, constituting unfair treatment of a minority shareholder. The tribunal preserved the petitioner's original shareholding at incorporation and directed a share valuation to enable a fair exit, with the company bearing the valuation fee and interim protection against further alteration of shareholding.

Regulatory authority of RBI: directions in public interest can bar civil claims and restrain NBFC asset transfers.
RBI directions in public interest can prohibit an NBFC's asset alienation and bind civil claims even if the enabling provision is not cited; failure to challenge such directions constitutes waiver/acquiescence, preventing civil relief that conflicts with the direction. Constructive res judicata bars subsequent suits where the cause of action accrued earlier and was not raised, and winding-up petition commencement creates a suspect period during which transfers may be impeached as potentially fraudulent.

Arbitration appointment governs share-conversion dispute, shaping insolvency jurisdiction and conversion mechanics in related contracts.
Disputes over the conversion formula for optionally convertible redeemable preference shares following a qualified initial public offering were submitted to arbitration under agreements designating Mumbai and a three-arbitrator tribunal with a Chairperson. Parties disputed entitlement percentages and refund implications; compliance with SEBI Regulations required conversion prior to the QIPO. A related claim that unpaid redemption sums triggered corporate insolvency proceedings was assessed, and the factual record did not establish a contractual default sufficient to invoke the insolvency resolution process. Multiple arbitration agreements between the same parties permit separately constituted proceedings for international and domestic arbitration while retaining the same tribunal members.

Duomatic principle upheld: unanimous member acquiescence prevents oppression or mismanagement findings in family company governance dispute.
The Duomatic Principle was applied to validate informal corporate acts where members gave unanimous or tacit assent: a director's withdrawal of resignation, the appointment of a managing director, and share transfers were held bona fide and not fraudulent. The appellant's prior knowledge and acquiescence estopped subsequent challenges, and she lacked locus to sue on behalf of trusts. Fraud remains an exception to Duomatic application; absent fraud and public prejudice, the facts did not constitute oppression or mismanagement.

Duomatic principle: unanimous member assent can validate informal corporate acts and bar oppression claims without fraud.
The Duomatic Principle validates informal corporate acts effected with unanimous or tacit member assent, permitting departure from strict statutory formalities where transactions are bona fide and free from fraud. Prior knowledge, acquiescence and estoppel by a complainant can negate claims of oppression or mismanagement arising from appointments, withdrawal of resignations, share transmissions, and conduct of meetings, preserving corporate finality and internal decision-making.