ATR-13 LIEN ON BOOKS OF ACCOUNTS
DUE TO NON-PAYMENT OF PROFESSIONAL DUES:

Opinion was sought on the proper course of action in the following circumstances:-

“We were appointed auditors of M/s................. for the year ended 30th June, 1984. We conducted the audit for the year 30th June 1984. We also took up the stock taking for the year ended 30-6-1984 & 1985.In the meantime due to non cooperation of responsible staff of M/s.................
we have communicated our inability to carry on the audit. We have incurred self cost of Rs. 5,500/- for the time consumed on this job. In the meantime due to mismanagement, Government has appointed an Administrator to investigate affairs of M/s......................................
We have in our possession some books of accounts of M/s......................... we have asked the Administrator to reimburse our out of pocket expenses. According to law we have no lien over the books of accounts of M/s.................

Whereas we fear that if the books are returned our outstanding amount will not be paid by them. We shall be obliged if you please advise us the proper course to be adopted.” The following opinion was given: Since there is no lien on books, books should be returned. Legal remedies may be tried for the recovery of the dues.
Dated:  18-9-1985