9911796707
TMI Blog1997 (12) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough another application, C. A. No. 67 of 1997, the petitioners have sought for amendment to the said application, viz., 65 of 1996. 2. Dr. Debi Prasad Pal, senior advocate, appearing for the petitioners, even though the application contains various allegations, restricted his arguments on the following two allegations only for the prayer for the appointment of an administrator. 3. One relates to the donation of ₹ 10 lakhs, made by the company to one Sri Srinivasa Charity Trust. According to him, this trust was wound up through a resolution of the trustees on May 20, 1992, while the donation to the trust was made during the year 1994-95. In other words, according to him, the donation was made to a non-existing trust and thus t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, obviously had been diverted without being accounted for and the sale value thereof has been siphoned off by the second respondent. The value of such unaccounted and diverted items would run into crores of rupees which is a clear case of misappropriation of company funds, which, unless checked through the appointment of an administrator, would prejudicially affect the interest of the company and its shareholders. 5. Shri Raghavan appearing for the respondents, at the outset, raised a preliminary objection that the petitioners cannot travel beyond, the allegations made in the petition and the reliefs sought for in the main petition, through fresh allegations in a subsequent application. To the proposition that subsequent events cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this connection referred to the income-tax return filed in respect of this trust at annexure R-4 and also the income-tax exemption certificate issued by the Income-tax Officer dated March 6, 1995, at R-3. Therefore, he urged that the donation of ₹ 10 lakhs had been made to an. existing trust and as a matter of fact this amount is still held as deposit in the bank account maintained by the said trust. 7. In relation to the second allegation relating to discrepancies alleged in the figures of production, sales etc. of the automobile parts manufactured by the company, he submitted that the company manufactures over 400 automobile parts and it is not possible to indicate detailed figures of opening stock, production, sale and closi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Kumar Mittal v. Southern Steel Ltd. [1980] 50 Comp Cas 555 (Cal). He also questioned the authenticity of the signature of the petitioner in annexure R-l. According to him, the petitioner never signed any minutes of the meeting of the trust and the signature is a fabricated one. He maintained that annexure A-1 is the correct version of the minutes by which the trust stood wound up on May 30, 1992, and respondent No. 2, by making a donation of ₹ 10 lakhs to this trust, had siphoned off the Said amount. He reiterated his submissions in relation to the discrepancies in the figures of automobile parts. 9. We have considered the arguments of counsel. Shri Raghavan has raised an issue relating to whether subsequent events could be agi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... status quo in regard to the affairs of the company. No relief which would upset the status quo can be granted when the allegations in the main petition are yet to be assessed by the Company Law Board. Thus, our conclusion, on the issue of subsequent events, is that there is no bar to subsequent events being brought on record and being considered by us also but such consideration would be only to mould the relief to be granted in case the petitioner succeeds in the main petition and any interim relief granted, based on subsequent events, would be limited to status quo being maintained in regard to the affairs of the company. 11. Now, coming back to the issues before us, the trust is not a party in these proceedings and which of the minute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been certified by the auditors also. We also find from the reply filed by the respondents at annexures R-6 and R-7, wherein they have given complete details regarding the quantity of the production, sales and closing stock of the items which are in dispute. The automobile parts produced by the company are subject to both sales tax as well as excise duty. The discrepancies as pointed out in the physical quantity, by the petitioner, are so large that it is inconceivable that these items had gone out of the factory without the knowledge of the sales tax or excise authorities. If the petitioner had shown us that the sales figures as per the annual accounts would be the same, without considering the value of the items alleged to have been div ..... X X X X Extracts X X X X X X X X Extracts X X X X
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