In the judgment of Union of India and Another vs. Deloitte Haskins and Sells LLP & Another, the Supreme Court has enunciated and cleared the law pertaining to the removal and resignation of a statutory auditor vis-à-vis the proceedings initiated under Section 140(5) of the Companies Act, 2013 (“Act”). The Supreme Court upheld the constitutional validity of Section 140(5) of the Act and interpreted it as “neither discriminatory, arbitrary and/or violative of Articles 14, 19(1)(g) of the Constitution of India”. The Supreme Court clarified that the resignation of an auditor after filing an application under Section 140(5) of the Act does not automatically terminate the proceedings initiated under this Section.
Associate in the Dispute Resolution Practice at the Delhi NCR Office of Cyril Amarchand Mangaldas. Adhiraj focuses on commercial disputes, insolvency, arbitration, white-collar crimes, and environmental matters. He can be reached at firstname.lastname@example.org