143(1) gives right to access books and not right to excercise lien.
As per general principles & ICAEW exercising lien may seem logical but as per Sec 128 / Supreme CourtJ Judgement/ ESB Announcement it is impractical to exercise lien and it will lead to misconduct
Requirements of General Principles of Law
General Principles of Law – Person with lawful possession of property and worked on it, can exercise lien for non payment of his dues – Same logic can be applied to Client Books
The Institute of Chartered Accountants in England and Wales has expressed a similar view on the following conditions: – Auditor Can exercise lien subject to Conditions – Possession as per Authority of Client / Documents belong to Client / Client Owes Money / Fees Money is Connected with Work on those documents
Requirements of Sec 128
Sec 128 of Company Act – Books should be kept at registered office / So it is impractical for auditor to keep possession / Company has to allow access to auditor / directors / authorised persons
Requirements of Saxena Vs Sharma & ICAI ESB Announcement
In Saxena Vs Sharma Case Supreme Court Said that professionals should not exercise line on client documents as it would lead to a problem in running client business. ICAI ESB also said if CA exercises lien it will be misconduct.
As per general principles & ICAEW exercising lien may seem logical but as per Sec 128 / Supreme Court Judgement / ESB Announcement it is impractical to exercise lien and it will lead to misconduct.