2008 (5) TMI 430

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..... the Court is satisfied that though technically the person may be liable in respect of negligence, default, breach of duty, misfeasance or breach of trust, yet he acted honestly and reasonably. In the facts of the present case it is not possible to conclude that the directors have acted honestly and reasonably. Recourse to section 633 is thus clearly not permissible. The appeal has no merit and is .....

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..... 1956, it was observed that the company has accepted huge amounts from the directors, shareholders, corporate bodies (companies) and from public ever since 1999. It was observed that there is no resolution of the board passed at any point of time authorising the management, i.e., the managing director and the whole-time director (WTD) to receive the application money. It was observed that the al .....

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..... to which the company furnished its reply/explanation and stated, inter alia, that the amount shown under the head Share application money during the periods 31-3-2000 to 31-3-2005, in fact was a current account transaction. It was stated that as there is no provision in the Companies Act, or in Schedule VI to reflect the current account balances, the same had been reflected under the head Sha .....

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..... t unsecured loans were in fact friendly and temporary loans based on the oral agreements and, therefore, no interest was payable thereon and the acceptance of share application money from various companies during the periods 31-3-2000 to 31-3-2005, were current account transactions and as such no specific disclosure requirement has been prescribed in Schedule VI. 5. Repelling this argument, th .....

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..... in the reasoning of the learned Single Judge. It is well-settled that the Court s power to relieve the accused of an offence is exercised only when the Court is satisfied that though technically the person may be liable in respect of negligence, default, breach of duty, misfeasance or breach of trust, yet he acted honestly and reasonably. In the facts of the present case it is not possible to con .....

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