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2010 (9) TMI 888 - HC - Companies LawFalse statement in the prospectus - petitioner's company while issuing prospectus made a statement to intending investors that it would undertake the business of leasing and wanted people to subscribe to the shares for this purpose. It gave projections of profits and business of the company of only in the field of leasing. One can understand that the surplus funds of the company are deployed by the company in a businesslike and wise manner but one cannot understand that the business of the company is not even undertaken and the entire funds of the company are either invested in shares or in the firms and companies of the directors – Held that:- Registrar of Companies learnt about making of false statement after filing of balance sheet in the year 1999-2000, therefore, limitation would start only after the date of filing of balance sheet and not from the date of issuing prospectus and this plea, therefore, is not tenable. Whether the directors had resigned or not which is a question of fact which cannot be gone into by this Court and only the trial court, during trial can decide whether the directors had resigned or they continued to be the directors, petition is dismissed
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