*CIVIL / CRIMINAL LIABILITY OF A PARTNER OF A CA FIRM* - The Gujarat High Court cancelled a case filed by the Registrar of Companies (ROC) against a partner at Deloitte Haskins and Sells. The case was about not reporting related party transactions in the audit report of Mafatlal Industries Limited. A criminal case was filed by the Registrar of Companies (ROC) in 2018 under section 143 of the Companies Act, against Rayan Salivati, Deloitte’s partner. The filed complaint reported that, as an auditor, he did not properly disclose some transactions with related parties in the financial statements. This was against the legal rules, especially Accounting Standard 18. Because of this, he could be prosecuted under Section 147(2) of the Act. A formal investigation was also started based on this complaint. A petition was registered by Salivati for cancelling the proceedings. The petitioner raised an argument that the Registrar of Companies (ROC) failed to notify how he himself was involved in commission of the reported crime. It was argued that an individual partner of the audit firm cannot be personally held responsible for a crime that is said to have been committed by Deloitte Haskins, which is a partnership firm. Therefore, taking legal action against the petitioner as an individual is not valid. The High Court has dismissed the ROC’s criminal complaint against Deloitte. The High Court stated, “ *In order to bring a partner of the partnership firm within the outline of civil or criminal liability, it has to be proved that they acted in a fraudulent manner or colluded in any fraud. If it is not proved, then the partner cannot be held for punishment under Sections 139 to 146 of the Companies Act.” * It further stated, “While examining the questioned in light of the aforesaid law, this court is of the opinion that the petitioner, who has been joined in an individual capacity without joining M/s. Deloitte Haskins as an accused, is not needed to be sent for facing trial.”