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2021 (1) TMI 1175 - NATIONAL COMPANY LAW TRIBUNAL - HYDERABAD BENCHSeeking direction to respondent not to deposit the amount due against them, in any bank account of respondent No. 1-company, which cannot be operated upon under the joint signature of the petitioner - siphoning of funds - illegal monetary benefits by manipulating records of the company - section 242(4) of the Companies Act, 2013 - HELD THAT:- It is the case of respondent No. 2 that the applicants are indulging in forum shopping and Bench hunting as the applicants have filed Regular Civil Suit No. 117 of 2020 before the learned Civil Judge, Senior Division, Wardha, with similar prayers, viz., to close the account of PNB and not to act upon instructions of respondent No. 1/company. However, the Wardha Court refused to grant interim relief. Similar prayer is made in the company petition as well as I. A. No. 664 of 2020 and I. A. No. 989 of 2020, which amounts to forum shopping. Respondent No. 2 further averred that the applicants failed to get any relief from either of the forums and the applicants are indulging in forum shopping and Bench hunting. Respondent No. 2 has further alleged that the applicants have siphoned off an amount of ₹ 56 crores unto themselves and their relatives. Applicant No. 1 alone had diverted ₹ 3.28 crores to himself and his related parties. Respondent No. 2 has further alleged that cause of action arose prior to filing of the company petition. The applicant cannot raise issues, which relate prior to filing of petition, as provided under Order 2, rule 2 of the Code of Civil Procedure. Respondent No. 2 further submitted that the courts will not interfere in the internal affairs of the company as long as the company functions under the articles of association - In order to avoid more diversion of funds by the applicant acting solely, the board of directors in their meeting dated June 18, 2020 passed a resolution to receive all the funds in the account maintained with Yes Bank account and instructed the debtors accordingly. It is directed that the bank account of respondent No. 1 maintained with Punjab National Bank (PNB), Wardha as well as the bank account maintained with Yes Bank be operated by one representative from each group, viz., one signatory from the applicants' group and one signatory from the respondents' group. Accordingly, one signatory from each group shall be nominated for operating the accounts henceforth. This arrangement shall be applicable to new accounts, if any, opened hereafter by respondent No. 1/company. This arrangement shall govern until the parties resolve the differences amicably - allegations levelled by the applicants and the respondents against each other on the financial irregularities require investigation by the Registrar of Companies. Accordingly, the Registrar of Companies are directed to conduct an investigation into the affairs of the company, initiate action against the directors or persons responsible for irregularities, if any found, for siphoning off funds as alleged. Application disposed off.
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