Section 4
Subs. by Act 1 of 2018, s. 44, for "and with fine which shall not be less than one lakh rupees but which may extend to twentyfive lakh rupees" (w.e.f. 9-2-2018).
4. Subs. by Act 1 of 2018, s. 44, for "and with fine which shall not be less than one lakh rupees but which may extend to twentyfive lakh rupees" (w.e.f. 9-2-2018).
(ii) pay for damages to the company, statutory bodies or authorities 1 [or to members or creditors of the company] for loss arising out of incorrect or misleading statements of particulars made in his audit report.
(4) The Central Government shall, by notification, specify any statutory body or authority or an officer for ensuring prompt payment of damages to the company or the persons under clause (ii) of sub -section (3) and such body, authority or officer shall after payment of damages to such company or persons file a report with the Central Government in respect of making such damages in such manner as may be specified in the said notification.
(5) Where, in case of audit of a company being conducted by an audit firm, it is proved that the partner or partners of the audit firm has or have acted in a fraudulent manner or a betted or colluded in any fraud by, or in relation to or by, the company or its directors or officers, the liability, whether civil or criminal as provided in this Act or in any other law for the time being in force, for such act shall be of the partner or partners concerned of the audit firm and of the firm jointly and severally.
Roop's Law Assist