R NANABHOY Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is a reputed firm of the Cost Auditors with the standing of about 40 years. The Company Law Board by its decision dated 18-11-1980 took the following decision imposing restrictions on number of cost audits that can be entrusted to a Cost Auditor/a firm of Cost Auditors:

(2.) The impugned decision is challanged by the petitioner on the following grounds:

(3.) The respondents justify the decision as a step for promoting efficiency and dispersal of the cost audit work with a view to prevent monopoly. The respondents submit that were because of the complaints of concentration of work received by the Council. It is then submitted that the statutory body of the cost auditors, namely, the Institute of Costs and Works Accountants of India has recomended the restriction imposed by the impugned decision. They further submit that Section 637A, read with Section 209 (1)(d) read with Section 233(B), empowers the Central Government/Company Law Board to impose the restrictions stated in the impugned decision.