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2020 (8) TMI 162 - HC - Companies LawPurchase of property - Issuance of direction or order to the effect to set aside or not to accept the recommendation made by the learned Mr. G.P. Thareja - the Presiding Officer of the One Man Committee constituted by this Hon’ble Court in its XIIIth Report dated 05.02.2007 - completion of process of registration/execution of the Sale Deeds of the land - providing of all necessary documents - violation of principles of natural justice - HELD THAT:- Both the reports, namely, the Thareja Committee Report and the SFIO Report have rejected the claim of the applicant. It is not in dispute that the agreement to sell and power of attorneys were executed. The Thareja Committee report however concludes that material evidence has not been produced and that the transaction is not genuine and bona fide. The report gravely doubts that any consideration was paid. SFIO in its report concludes that the resolution authorising Sh. V.K. Sharma to make the agreement to sell and GPA on behalf of the five stated companies of the JVG Group are fabricated. The conclusion is unequivocal that Sh. V.K. Sharma had no authority to execute the said documents and to receive any consideration for and on behalf of the said companies in cash. The report unequivocally concludes that Sh. V.K. Sharma has indulged in fraudulent conduct and has siphoned off the company’s money. Based on these two reports, it is quite clear that the transaction which is claimed by the applicant company cannot be accepted. Regarding the objections taken to the Thareja Committee report by the applicant, the objections are misplaced. There is no dispute that the agreement to sell and power of attorney were duly executed and registered. The issue is as to whether the consideration was actually paid given the fact that it is claimed to have been paid in cash. The Thareja Committee report concludes that the relevant documents, namely, the cash book, ledger, etc. have not been placed on record and concludes that the transaction lacks bona fide. This conclusion is supported by so many other surrounding facts and circumstances which render the objections raised by the applicant to the Thareja Committee Report completely irrelevant and without merits. The transaction as alleged by the applicant is not a bona fide act. The conclusions of the Thareja Committee is concurred with - Further, in 2002 when the alleged transaction took place, the JVG Group of Companies was a sinking ship. The flagship company of the Group, namely, JVG Finance Ltd. had already been ordered to be provisionally wound up by order dated 05.06.1998. One cannot help coming to the conclusion that this transaction was carried out only to whisk away valuable assets of the JVG Group of Companies which at that time were likely to go under winding up proceedings. Application dismissed.
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