9911796707
TMI Blog1998 (11) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... (SEBI) in the interest of the members of public on the basis of certain complaints received by the petitioner. 5. Unfortunately, it appears that there is no legislation which can effective-ly control the mushrooming of company which tempt small investors to deposit their life-savings in such companies promising to pay fanciful return on their investments but actually defrauding the investors after siphoning off large amounts from such investments. The situation on the whole, prima facie, is not very happy and knowing full well the promoters of the powers of the Board as well as the self-imposed restrictions under article 226 of the Constitution, whether the Courts cannot be the silent spectators to such piquant situation. The present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first respondent-company are as under: (1)SPG Krushi Vikas Dainik Nivesh Yojana (2)SPG Krushi Bal Kalyan Yojana (3)SPG Krushi Dhanavrudhi Yojana (4)SPG Krushi Savadhi Nivesh Yojana (5)SPG Krushi Vikas Masik Nivesh Yojana (6)SPG Agrobond Scheme (7)Money Bag Scheme 7. It has been pointed out by the petitioner that the petitioner has received approximately eleven complaints from investors of the first respondent- company to the effect that the cheques issued by the first respondent- company have been dishonoured due to insufficient funds in the bank accounts of the first respondent-company. The counsel appearing for the petitioner has also drawn attention of the Court to a letter dated 4-12-1997 (page 193 of the petition) ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1 wheresoever situated required to be frozen and attached to protect the investors moneys from being filtered away. It is also submitted that respondent No. 1 being an institution controlling all banking activities, alone has the power to issue orders and directions against commercial banks, co-operative banks, etc., restraining respon- dent No. 9 from withdrawing moneys from commercial banks and/or co-operative banks or from operating the said bank accounts, and, therefore, SEBI has approached this Court. The counsel appearing for the petitioner, submitted that, apart from the aforesaid facts, in the case of DDA v. Skipper Construction Co. ( P. ) Ltd. AIR 1996 SCW 2401 the Apex Court has specifically held that the concept of corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding others, the Court would ignore the entity with regard to corporate company and its association of men and women and will do justice between the real persons. After discussing other authorities, the Court has observed that the concept of corporate entity was evolved to encourage and promote trade and commerce but not to commit illegal- ities or to defraud people and held as follows: "Where, therefore, the corporate character is employed for the purpose of committing illegality or for defrauding others, the Court would ignore the corporate character and will look at the reality behind the corporate veil so as to enable it to pass appropriate orders to do justice between the parties concerned. The fact that Tejwant Singh and members of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the rights conferred by Part III but for any other purpose and any other purpose would include such public interest purpose. 11. In this view of the matter, we pass the following order: ( a )The D.G.P. of State of Maharashtra is directed to instruct the State CID, Poona and other concerned police authorities to enquire into various frauds committed by the first respondent-company and its Directors. ( b )Investigating Officers are directed to hold necessary enquiry to find out the whereabouts of the first respondent-company s property both movable and immovable and whereabouts of its directors who are not traceable. ( c )Respondent Nos. 1 to 8 and the group companies described Schedule H to the petition are directed to fort ..... X X X X Extracts X X X X X X X X Extracts X X X X
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