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TMI Blog2018 (2) TMI 1329X X X X Extracts X X X X X X X X Extracts X X X X ..... pto 31.08.2017 to be paid by 31.08.2019. It is further prayed in this affidavit that for the deposits payable from 01.09.2017 onwards, the extension of two years more may be granted in addition to the time granted while approving the Scheme on 20.10.2016. Such a prayer made in the matter, which stood disposed of on 20.10.2016 is absolutely not tenable. This would amount to second time extension, which in any case cannot be permissible. No ground for further indulgence in the matter and hold that the petitioner company is bound to comply with the orders dated 20.10.2016 for making payment to the depositors in accordance therewith as further clarified in the order dated 02.02.2017 whereby the extension of time with regard to components of interest and the principal amount was granted. As the instant petition remained pending for quite some time, a direction is issued to the petitioner company to pay the upto date amount for which the petitioner company has defaulted despite the directions dated 20.10.2016 and further clarified on 02.02.2017, by 15.01.2018 and shall file an unconditional affidavit stating strict compliance, with the Registrar of Companies, NCT of Delhi and Harya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Quarter ended 30thSeptember, 2015 1,08,964.31 1436.56 Quarter ended 31stDecember, 2015 1,04,125.56 487.70 Quarter ended 31stMarch, 2016 50,847.07 (1730.73) 5. The causes of the financial problems are stated as under: (a) Regulatory constraints; (b) Severe loss of revenues; (c) Increase in expenditures; (d) Low profitability; (e) Cash crunch; (f) Low profits in ongoing business assignments; (g) Low liquidity; (h) Stoppage in acceptance of fixed deposits resulting in reduction in cash inflows; (i) General downtrend in economy resulting in low consumer demand; (j) Seasonal fluctuations. 6. The petitioner company in its Board meeting dated 30.04.2016 approved the re-schedulement proposal for the payment to the depositors by issuing a public notice in three newspapers on 20.05.2016 and again on 06.07.2016 with the revised proposed scheme. The Board resolution and the paper publications are also attached with the petition. As per financial statement, the aggregate liability of the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2017-18 ₹ 3594.57 crores and for the next financial year 2018-19 the projected figure is ₹ 3799.48 crores. The profit before tax for these years is 0.07%; 0.69% and 0.91% and the profit after tax 0.05%; 0.51% and 0.68% respectively. The cash accrual for these years is ₹ 17.10 crores; ₹ 34.06 crores and ₹ 41.57 crores with the percentage of cash accrual in terms of sales. 10. In the projected balance sheets for these years, the total current assets were said to be ₹ 1387.24 crores; ₹ 1409.83 crores and 1435.28 crores with total current liabilities for these years as ₹ 899.82 crores; ₹ 914.53 crores and ₹ 943.88 crores respectively. The non-current assets for these year are shown as ₹ 244.88 crores, ₹ 234.60 crores and ₹ 226.05 crores respectively. It was also disclosed in this affidavit that the company accepted the deposits to the tune of ₹ 38,20,17000/- under the Companies Act, 1956 and ₹ 15,69,85,6000/- under the Companies Act, 2013. 11. The petitioner company filed the revised plan on 20.09.2016, but it was observed by NCLT, Delhi in its order dated 27.09.2016 that the same was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epositors. Affidavit of the Managing Director be filed in respect of dispatch of all overdue cheques within four weeks. 6. With respect to the FDs maturing from 1st October, 2016 onwards, time is granted as under:- (a) 10% on maturity; (b) 10% after six months of maturity; (c) 15% after one year of maturity; (d) 15% after 1.5 years of maturity; (e) 25% after two years of maturity; (f) Balance 25% after 2.5 years of maturity . 7. The payment of interest and remittance of the principal amount shall also be in accordance with the terms spelt out in paragraph 5 above. The petitioner company also undertakes to pay the overdue interest by 31.12.2016. Apart from the above, the company has proposed repayment of ₹ 20 lacs every quarter towards the Hardship cases and a sum of ₹ 10 lacs every quarter towards the Senior Citizens over the age of 80 years. 14. The Hardship Committee was also constituted. It was further directed that the compliance report in respect of the payments as per the schedule was to be placed before the NCLT, Delhi for review and quarterly extension of another term of the proposal accepted by the NCLT and affidavit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The list referred to by the learned senior counsel shows that this pertains to about 189 and 24 more depositors. To some of them partial payments have been made towards the principal amount and to rest of them, only the interest. However, there is one Cyrian Kujur, to whom an amount of ₹ 50,000/- was paid towards the principal and an amount of ₹ 3448/- towards interest on 05.09.2017. There are two more persons from this list to whom, small amounts have been paid towards the principal and interest. One is Rajiv Oberai at serial No.107 and other is Manjit Kapoor at serial No.189, the latter having been paid ₹ 2,50,000/- towards principal amount and interest amounting to ₹ 955/- on 20.09.2017. There is one more list relating to the same period pertaining to 24 depositors, some of whom are paid only towards principal amount and the others towards interest. 19. The prayer made for further extension of time in modification of the order dated 20.10.2016 is strongly opposed by the various depositors and there are even about 20 such depositors who have filed separate petitions under Section 73 (4) of the Companies Act, 2013. Sub-section (4) of Section 73 of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tacle in disbursing the money to the investors in terms of the scheme. It was, therefore, prayed for extension of time for making payment of entire interest components for two quarters ending 31.12.2016 and 31.03.2017 by the end of March, 2017. It was further undertaken that the principal outstanding for three quarters i.e. 31.12.2016, 31.03.2017 and 30.06.2017 would also be liquidated on or before 30.06.2017. Number of investors were present on that date, who drew attention of the Bench to the dishonoured cheques. It was found that those cheques are for paltry amounts and could be easily liquidated. The petitioner was directed to ensure that the outstanding liability of the aggrieved investors present in the Court are redressed immediately. 23. Thereafter while the proceedings were going on, the matter was received in this Tribunal by transfer as the jurisdiction in respect of the petitioner company having its registered office in the State of Haryana was conferred upon this Tribunal. 24. The learned senior counsel for the petitioner company submitted that the company has faced further difficulties in meeting out the directions passed in the order dated 20.10.2016 and furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is absolutely no reason to accept the aforesaid contention on behalf of the petitioner. The company having earned huge profits in the previous years and projected so in the next few years, the interest of the depositors should have been given propriety and to clear of the liability. 28. There seems to be no serious effort by the company to meet out its obligations, after the petition was disposed of with the necessary directions on 20.10.2016 as further clarified in the order dated 02.02.2017. In the order dated 20.10.2016 further extension to Scheme was to be granted by monitoring the Scheme on quarterly basis, but the company has been coming up with different excuses for the delays which cannot possibly be accepted from the apparent facts and circumstances of the case. Looking into the pathetic situation, which the depositors are facing having invested in the company with the attractive rates of interest, there is no reason at all for showing any further indulgence. 29. The provisions of Section 74 of the Companies Act, 2013 are very stringent and looking into the objective of the legislature, it has to be interpreted in its letter and spirit. Section 74 of the Companies A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for punishment with fine which shall not be less than one crore rupees but which may extend to ten crore rupees and every officer of the company who is in default is liable for punishment with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with both, as per sub-section (3) of Section 74 of the Act 2013. 31. Though this petition stood disposed of by approving a Scheme vide order dated 20.10.2016 and was being kept only for quarterly monitoring, with further relaxation vide order dated 02.02.2017 with regard to the component of interest for two quarters ending 31.12.2016 and 31.03.2017 to be liquidated by March, 2017 and the principal amount of three quarters ending 31.12.2016, 31.03.2017 and 30.06.2017 to be liquidated on or before 30.06.2017, the petitioner has come up with an absolutely new proposal and this conduct of the company would show its total disregard to the directions issued earlier and not taking the stringent provisions of the Act seriously. 32. When the matter was listed on 10.08.2017 before this Tribunal, it was observed that in view of the seriou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstant petition remained pending for quite some time, a direction is issued to the petitioner company to pay the upto date amount for which the petitioner company has defaulted despite the directions dated 20.10.2016 and further clarified on 02.02.2017, by 15.01.2018 and shall file an unconditional affidavit stating strict compliance, with the Registrar of Companies, NCT of Delhi and Haryana, by 24.01.2018. Direction is also issued to the Registrar of Companies, NCT Delhi/Haryana that in case of failure of the company to make compliance by the stipulated date, as directed above and in making payment strictly in accordance with the order dated 20.10.2016, the Registrar of Companies shall take steps to initiate prosecution of the company and all the officers of the company as were responsible on the date of the petition i.e. on 04.08.2016 and also all the officers who are liable as on date, under sub-section (3) of Section 74 of the Companies Act, 2013 before the Special Court. At the same time, the depositors shall also have their own right to take appropriate steps for non-compliance of the directions contained in this order and the previous orders dated 20.10.2016 and 02.02.2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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