MUMBAI BENCH-I IA 1179 of 2020 IN CP / 2996/ (MB)/ 2019 Under Section 140(5) of Companies Act, 2013.

Mr. Dattatray Maruti Khune …Applicant Vs.

Union of India Through Ministry of Corporate Affairs … Respondent no1.

Netwealth Agrotech India Limited … Respondent no 2.

In the matter of Company Petition No. 2996 of 2019, Under Section 140(5) of Companies Act, 2013.

Union of India Through Ministry of Corporate Affairs …Petitioner Vs.

Mr. Dattatray Maruti Khune & Ors.

… Respondent Order pronounced on 12.01.2026 Coram :

Shri. Prabhat Kumar Shri Sushil Mahadeorao Kochey Hon’ble Member (Technical) Hon’ble Member (Judicial)

Appearances:

For the Applicants : Adv. G. Aniruth Purusothaman For the Respondent 1 : Adv. Kunal Kanungo

ORDER

1. This Interlocutory application filed by Dattatray Maruti Khune (“Applicant”) for dismissal of company petition, challenging the maintainability of the company petition no. 2996 of 2019 filed by the Respondent no.1(Union of India, through Ministry of Corporate Affairs) u/s 140(5) of the Companies Act, 2013 and rule 11 & 32 of the NCLT Rules 2016. The Applicant has prayed for following :

a. Be pleased to dismiss the Company Petition No. 2996 of

2019 filed by the Respondent No. 1 in view of the grounds pleaded above.

b. Pass ad-interim and interim reliefs in terms of Clause (A)

c. Pass such other order / directions as this Hon'ble Bench may deem fit and proper in the facts and circumstances of the case.

2. Applicant is Mr. Dattatray Maruti Khune, former Statutory auditor of Netwealth Agrotech India Limited (Respondent No. 2 Company). Respondent No. 1 is Union of India, through the Ministry of Corporate Affairs.

3. A Company Petition was filed in August, 2019 by the Union of India under Section 140(5) of the Companies Act, 2013, seeking cessation of Applicant herein as Statutory Auditor of Respondent No. 2 Company in terms of Section 140(5) of the Companies Act, 2013, and consequential order in terms of second proviso to Section 140(5) for disqualification of the Applicant herein as an auditor of any company for a period of five years from the date of passing of the order. The Respondent No. 1/Union of India has also filed Company Petition 205 of 2022, under Section 271-273 of the Companies Act, 2013 seeking winding up of the Respondent No.

2 company.

4. An inspection in the affairs of the Respondent No. 2 Company in terms of Section 206(5) read with 207 of the Companies Act, 2013 was carried out pursuant to a complaint in relation fraudulent activities in chit fund business carried out by the Respondent No. 2. Pursuant to the inspection report, the role of the Respondent No. 2 was further examined. It is stated by the Union that the Respondent No. 2 Company had filed balance sheets for the Financial Year ending 31.03.2015, 30.03.2016 and 31.03.2017 on 30.04.2018 and those balance sheets appeared to be forged/fabricated without previous figures as well as notes to accounts and a copy of the auditor’s report thereon. Accordingly, the inspecting officer called the Directors of the Respondent No. 2 Company as well as the Applicant herein and recorded their statement as well as the statement of the Statutory Auditor who had issued report on Financial Year for 2011-12 and the accountant of the Applicant herein.

5. It is stated that the Directors in their statement have admitted that no bills/vouchers/statutory records were maintained by the Company due to losses, sluggish market condition and disputes among the directors, and the business of the Company was stopped since, 2014. It is alleged that the Applicant herein had initially signed the Financial Statements for the year ended 31.03.2013 to 31.03.2017 without reporting corresponding figures for the previous years and issued the Audit Reports thereon even while the vouchers and Bills were stated to be not available. However, to cover-up these discrepancies, the Applicant is purported to have signed another set of Financial Statements for these years, which appears to have been pr