TMI Blog2001 (10) TMI 1180X X X X Extracts X X X X X X X X Extracts X X X X ..... was incorporated on 26 October, 1993, with the main object of setting up a semen processing laboratory for the production of superior genetics. As per the financial agreement, initially, the petitioner and the respondents were to contribute 50% each towards share capital and, ultimately, the petitioner was to have 26% shares and the respondents 25% shares and the public and financial institutions 49% shares. The project envisaged a total expenditure of about ₹ 6.53 crores to be financed by the petitioner ₹ 1.80 crores, the 2nd and 3rd respondents ₹ 1.73 crores and IDBI ₹ 3 crores by way of term loan. The petitioner has so far invested ₹ 1.35 crores and the 2nd and 3rd respondents, ₹ 1.82 crores. Even thou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny for the period 1993-94 were checked by the petitioner and it was found that there were many irregularities due to absence of proper vouchers, receipt, etc. Further, it was also noted that even though more than ₹ 38 lakhs had been paid as advance for purchase of land, the same has not been registered in the name of the company so far. In some cases, there have been unexplained credit in favour of M/s A.S. Bindra Associates, which is controlled by the 2nd respondent. In addition, there have been excess expenditure on the project than had been approved in the project report to the extent of ₹ 71 lakhs. Even though the Board had approved the accounts for all the years, yet, at the time of approving the accounts, it was also sti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Due to some political reasons, the petitioner withdrew from the project by not investing the balance amount of committed ₹ 1.8 crores. The 2nd respondent had promoted another company in the name of Punjab Meats Ltd. which was ordered to be closed by the State Government for some political reasons. Because of the closure of that company, that company could not service the loans taken from IDBI and, therefore, IDBI did not disburse any loan to the respondent company resulting in shortage of funds to complete the project. The nominees of the petitioner always constituted the majority on the Board and this Board has approved every balance sheet right from 1993-94 and, as such, they cannot allege that there had been financial mismanageme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter dated 17.1.1995 and had made investment in the company thereafter as matching contribution. This must have been only after getting satisfactory reply from the company. As far as the accounts of 1996-98 are concerned, the petitioner had checked the accounts of the company sometime in August, 1999, as is evident from 'Annexure 4'. Most of the findings of this report are found in this petition. We have gone through the report and find that this report only points out non-availability of vouchers, etc., for small amounts. There are only two substantive findings in that report -- one relates to non-registration of land for which over ₹ 36 lakhs have been spent, and another non adjustment of advances made to indigenous suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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