JUDGEMENT

Aravind Kumar, J.

1. The facts in brief are set out herein below:

The Bank of Rajasthan Limited, (hereinafter referred to as ‘Complainant-bank’) had engaged the services of M/s Ramesh C. Agrawal & Co. (hereinafter referred to interchangeably as ‘the firm’/’service provider’) for the purpose of conducting audit work. The audit work was to be carried out in respect of Sahara India, Aliganj, Lucknow Branch for a period of 3 years commencing from 01.01.2007. According to this arrangement, the service provider was required to submit monthly audit reports in respect of daily transactions/banking affairs of the concerned branch. This report had to be submitted within a particular time frame, i.e., by the 7th of the succeeding month. The service provider was also required to report any suspicious activity or foul play pertaining to the transactions under review, to the Chief Executive Officer of the Complainant bank.

On 27.09.2009, a series of circuitous transactions (hereinafter referred to as ‘subject transaction’) involving large sums of money are said to have taken place in certain accounts of the branch, which were neither regular nor normal in nature. However, in the audit rep