BHUPINDER KAUR SINGH Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) BOTH these petitions raise identical issues and, Therefore, are heard and decided by this common judgment.

(2.) THE Registrar of Companies (ROC) has filed two complaints against the petitioners herein impleading them as accused persons. Complaint No. 698/2002 is filed under Sections 63 and 628 of the Companies Act, 1956 (for short, 'the Act') alleging that the accused persons in the year 1996 promoted a company, namely 'Tactful Investments Ltd.' and raised public issue. In the prospectus, which was signed by the petitioners, it was mentioned that the money collected by way of public issue shall be utilized and invested in leasing business, which was going to be the main activity of the company. However, the funds collected by way of public issue were not utilized in the leasing business as stated or promised in the prospectus and, thus, the petitioners had made false statement in the prospectus, which act was punishable under Sections 63 and 628 of the Act. The public issue was of 24,00,000 equity shares of Rs. 10/ - each aggregating to Rs. 240 lacs and the following objects were mentioned in the prospectus for this public issue:

(3.) THE grounds for challenge, which are common in both these petitions, may first be noted: