1961 (12) TMI 40

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..... 1956, for relieving them from liability under sections 210 and 220 of the Act. The books of the company were seized by the Special Police Establishment in November, 1953, under search warrants issued under the authority of the District Magistrate, Delhi. The petitioners failed in their efforts to obtain possession of those books and their application to challenge the validity of the search warrants was dismissed by the District Magistrate on 28th March, 1956. The books relating to the years 1954 and 1955 were also seized by the Special Police Establishment. These books still remain with the Commission of Inquiry which has been constituted under the chairmanship of Mr. Vivian Bose. Under section 210 of the Companies Act, 1956, the board o .....

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..... its business and day-to-day accounts are maintained. The company soon after the orders of Tek Chand J. on 28th October, 1960, wrote to their auditors to prepare the balance-sheet and profit and loss account of the company. The Special Police Establishment was approached and also the Commission of Inquiry that the books may be made accessible to the auditors. The auditors wrote back to say that they are unable to prepare the balance-sheet and the profit and loss account within the period of two months. It was also stated by them that the entries in the books had to be ticked for proposes of audit and the secretariat of the Commission of Inquiry would not agree to any markings to be made on the books. Faced with this, position, the appellant .....

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..... quire the old books for checking the entries and figures in the balance-sheet but it does not provide any excuse for the company to carry on their business without drawing up proper balance-sheet and profit and loss accounts. It may be observed in passing that even Falshaw J. in his order of 18th March, 1960, afforded relief to the directors on the condition that "within two months statements of income and expenditure and receipts and payments for the year ending 31st July 1958 ............. are furnished, and also a statement of the particulars required under section 159 of the Act as nearly as possible in conformity with the form ..............". The concession was allowed by Falshaw J. for the statement of accounts ending with 31st July, .....

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