Defamation in audit Report by Statutory Auditor.
akash
(Querist) 20 April 2011
This query is : Resolved
I am a member of coop. hsg. society.Due to various illegality in society affairs I approached to the Joint Registrar Coop. societies who found primafacie and ordered inquiry under sec. 83 of MCS Act 1960.In audit report of 2009-10 Auditor made gen. remarks that "since the appointment of Architect was proposed by shri Saraf in the meeting of special general body, if municipality declares construction illegal, file suit against shri Saraf and Architect for cheating and recovery of loss of society's fund".Auditor is 'govt. certified auditor' in Thane, Mumbai.Inspite of the said enquiry he made imputations against me without any lawfull authority.Whether Defamation suit and criminal case can be filed against him.
Guest
(Expert) 20 April 2011
Yes, you must challenge the observation of the statutory auditors by file a case of defamation, as auditor can challenge the decision of the the Special General Body, not the proposal of a member, or even the office bearer.
Proposal can be given by any one, and that is not an offence. Passing of the resolution depends upon the wisdom of the general Body. So, the decision waould have been treated as a collective decision of the special general body, not the proposal as an individual's decision.
The auditors do not seem to have even common sense of this simple matter.
