TRIVENI GREENERY FINLEASE (INDIA) LIMITED Vs. DEV JEET NAG

JUDGEMENT

(1.) The matter has come up on an application under Sec. 543 of the Companies Act 1956 (hereinafter "the Act of 1956") read with Rule 9 of the Companies (Court) Rules, 1959 (hereinafter "the Rules of 1959"). M/s. Triveni Greenery Finlease (India) Limited (in liquidation) incorporated on 28/7/1992 with the Registrar of Companies, Jaipur Rajasthan (Registration certificate No.06856) with its registered office at 15, Diggi House Shivaji Marg, Jaipur was wound up by this Court vide order dtd. 17/10/2003 in S.B. Company Petition No.31/1998 on a petition filed by M/s. Anand Printco, Jaipur. The company in liquidation was a non-banking Finance Company for carrying out the business of finance and leasing. It accepted deposits from the members, floated various schemes and made advances and loans under hire purchase housing finance scheme to the depositors. The company in liquidation had an authorised share capital of Rs.15,00,000.00 divided into Rs.1,50,000.00 equity share of Rs.10.00 each and issue subscribed and paid up capital of the company was Rs.2,10,000.00 divided into Rs.21,000.00 equity shares of Rs.10.00 each fully paid up.

(2.) After the winding up order dtd. 17/10/2003, the respondent directors did not file statement of affairs. The Official Liquidator vide letter dtd. 14/8/2008 addressing to Shri N.C. Jain and Associates, Chartered Accountant required to undertake scrutiny of account books and records of the company in liquidation. Therefore, the Official Liquidator carried out an inspection of documents of the company in liquidation maintained by the Registrar of Companies, Jaipur and collected necessary information such as last annual return dtd. 30/9/1996 and the last balance sheet as on 31/3/1996. As per information on record, the respondents Dev Jeet Nag, Ahnish Kamal Bhatnagar and Yogesh Sharma were directors of the company in liquidation. In his report dtd. 6/10/2008, the Chartered Accountant found that furniture and fixtures of Rs.1,71,840.00 official equipments of Rs.1,13,740.00 and vehicles of Rs.81,119.00 had not been handed over by the respondent directors to the Official Liquidator, nor any amount or value thereof in lien was deposited by them. The fixed asset one motor car purchased for Rs.95,000.00 in the name of K.K. Purohit, Sirohi on behalf of the company in liquidation had not been handed over nor registration papers of the said were delivered to the Official Liquidator. The Chartered Accountant further found that an investment of Rs.19,95,243.00 was made by the company in liquidation in fixed deposit with the State Bank of India, Sirohi, Bikaner, Ahore, Kolayat and Jaipur Branches. However the official liquidator did not receive the said amount and it appeared that the respondent directors had privately realised the said FDR amount Rs.19,95,243.00. It was further found that as per balance sheet all advances were "good for recovery", therefore, it could be presumed that the entire amount due from loan and advances were realised outside the books of the company. It was further found that Rs.7,00,570.00 were cash in hand and Rs.25,81,627.00 were in bank aggregating to Rs.32,82,198.00 which had not been hand over to the official liquidator. Neither the statement of affairs nor account books nor any record after the last balance sheet as on 31/3/1996 was available. Such act of respondent directors indicated that they have unlawfully retained the funds of the company in liquidation.

(3.) It was found that in 1995-95 a piece of land was purchased for Rs.6,03,176.00 as its stock in trade. As per balance sheet other amount was of stock of printing and stationary Rs.90,000.00 and prepaid expenses of Rs.4,950.00 as current assets. Other receivables of Rs.31,89,897.00 (including Rs.32,000.00 deposit with P&T department, Rs.6,939.00 as TDS and Rs.96,400.00 as security deposit and hire purchase stock of Rs.30,44,558.00) due against housing finance and suspense balance was Rs.10,000.00. The Chartered Accountant found that prepaid expenses Rs.4,950.00 and Rs.90,000.00 for stationary has no realizable value. However out of current assets of Rs.37,88,573.00 advances, an amount of Rs.31,85,397.00 was realized by respondent directors as the said amount was "good for recovery". Land belonging to company in liquidation having purchase value of Rs.6,03,177.00 was required to be handed over by the respondent directors but was not done.