Auditor not to render certain services
Section 144 of the Companies Act, 2013 deals with auditor not to render certain services. An auditor appointed under this Act shall provide to the company only such other services as are approved by the Board of Directors or the audit committee, as the case may be, but which shall not include any of the following services (whether such services are rendered directly or indirectly to the The Act came into force on 01 Apr 2014.
An auditor appointed under this Act shall provide to the company only such other services as are approved by the Board of Directors or the audit committee, as the case may be, but which shall not include any of the following services (whether such services are rendered directly or indirectly to the company), or its holding company or subsidiary company, namely:--
(a) accounting and book keeping services;
(b) internal audit;
(c) design and implementation of any financial information system;
(d) actuarial services;
(e) investment advisory services;
(f) investment banking services;
(g) rendering of outsourced financial services;
(h) management services; and
(i) any other kind of services as may be prescribed:
Provided that an auditor or audit firm who or which has been performing any non-audit services on or before the commencement of this Act shall comply with the provisions of this section before the closure of the first financial year after the date of such commencement.
Explanation.-- For the purposes of this sub-section, the term "directly or indirectly" shall include rendering of services by the auditor,--
(i) in case of auditor being an individual, either himself or through his relative or any other person connected or associated with such individual or through any other entity, whatsoever, in which such individual has significant influence or control, or whose name or trade mark or brand is used by such individual;
(ii) in case of auditor being a firm, either itself or through any of its partners or through its parent, subsidiary or associate entity or through any other entity, whatsoever, in which the firm or any partner of the firm has significant influence or control, or whose name or trade mark or brand is used by the firm or any of its partners.
Section 144, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Kalpesh J Mehta vs Union of India
Court's Decision & Legal Precedent
In the IL&FS Financial Services auditor proceedings the Court held that the statutory auditor's duties under the Companies Act, 2013 - including the independent duty to report suspected fraud to the Central Government - are substantive obligations whose breach founds action against the auditor, and that an auditor who colludes in falsifying the accounts cannot escape the statutory consequences by resigning, since resignation does not render proceedings against him infructuous.
On this section: Treats Section 144's prohibition on an auditor rendering management services as part of the statutory independence scheme on which auditor accountability under the 2013 Act rests.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… non-audit services is not in excess of 50% of the statutory audit fee earned by its network from that listed auditee company or its holding company or subsidiary companies in a financial year. 3.The prohibited list of non-audit services under section 144 of the Companies Act, 2013 must include all kinds of taxation, valuation and restructuring services provided to the auditee company or its holding company or subsidiary companies. For this, the appropriate rules should be made. 4.Details of approval given by audit committee or the board of directors to auditors …
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… non-audit services is not in excess of 50% of the statutory audit fee earned by its network from that listed auditee company or its holding company or subsidiary companies in a financial year. 3.The prohibited list of non-audit services under section 144 of the Companies Act, 2013 must include all kinds of taxation, valuation and restructuring services provided to the auditee company or its holding company or subsidiary companies. For this, the appropriate rules should be made. 4.Details of approval given by audit committee or the board of directors to auditors …
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… non-audit services is not in excess of 50% of the statutory audit fee earned by its network from that listed auditee company or its holding company or subsidiary companies in a financial year. 3.The prohibited list of non-audit services under section 144 of the Companies Act, 2013 must include all kinds of taxation, valuation and restructuring services provided to the auditee company or its holding company or subsidiary companies. For this, the appropriate rules should be made. 4.Details of approval given by audit committee or the board of directors to auditors …
Questions about Section 144
What have the courts held on Section 144 of the Companies Act?
Kalpesh J Mehta vs Union of India (03 May 2023) is the leading judgment on this section among those set out below: Treats Section 144's prohibition on an auditor rendering management services as part of the statutory independence scheme on which auditor accountability under the 2013 Act rests.
How do I find court cases under Section 144 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 144, section 144 Companies Act, section 144 of the Companies Act. People searching for it also type companies act 2014 section 144. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Kalpesh J Mehta vs Union of India (03 May 2023).
What should I read with Section 144 of the Companies Act, and has it changed?
2 other provisions in this corpus refer back to it.
When did Section 144 of the Companies Act come into force?
Section 144 of the Companies Act, cited as Companies Act 144, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.