STATUS MANAGEMENT SERVICES LTD. Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) IN this petition filed by the petitioners under Section 633 of the Companies Act, 1956 (for short 'the Act'), challenge is notice to show cause notice dated 15th April, 2002 issued by the respondent, namely, Registrar of Companies. This notice is given to the petitioners alleging violation of Sections 62 & 63 of the Act. The petitioner No. 1 is the company (hereinafter called as 'the company') and petitioners No. 2 to 4 are its Directors.

(2.) THE company is engaged in the business of financial sector including financing, dealing in securities, leasing and hire purchase investing in deposits and providing consulting and advisory services. It was initially incorporated as Private Limited company on 8.4.1993 and was subsequently converted into a public limited company. Name of the company was thus changed and fresh certificate of incorporation was issued on 4th May, 1995. The company decided to raise its funds by issue of 18,12,500 equity shares of Rs. 10 each aggregating to Rs. 1,81,25,000. This included funds from public by way of issue of 10 lac equity shares of Rs. 10/ - each aggregating Rs. 1 crore. Balance 8,12,500 equity shares were reserved for promoters. The company filed a prospectus dated 13th March, 1996 and the aforesaid public issue was opened for subscription on 10.6.1996. The entire issue was subscribed.

(3.) THE deployment of funds as estimated was also stated in the prospectus. It was proposed that the proceeds of the issue would be utilized in the following manner: