The matters affecting PUBLIC LIMITED companies listed on the STOCK EXCHANGES can be challanged on the basis of PUBLIC INTEREST because large number of shareholders are from public?
If yes why? If no why?
For example; The firm of auditors are as per the provisions of the companies act 1956. Later on found that partners of the firm are fighting and even one partner has filed criminal case against other partners. They do not talk to each other.Civil cases are also filed among partners.Even bank account was under stop payment intruction by a parnter for two months. Can P.I.L be filed to restrain such firm of chartered accountants to act as auditors of public limited companies?
(Expert) 03 September 2008
My understanding is that Public interest litigations are in the nature of Writ Petitions under Article 32 or 226 of Constitution of India. As you know, Writ Petitions can be filed against actions or inactions of State or its authorities, or for a direction to State, I am afraid, you can file any PIL for irregularities in the affairs of a company.