PENNWALI INDIA LTD Vs. REGISTRAR OF COMPANIES MAHARASHTRA

JUDGEMENT

(1.) The appellants are the original petitioners. The first petitioner company is a company registered under the Companies Act, 1956, and carries on business, inter alia, as general engineers and contractors. Petitioners Nos. 2 and 3 are directors of the first petitioner company.

(2.) During the years ending on October 31, 1980, October 31, 1981, and October 31, 1982, the company had deposited with various independent and reputed public limited companies certain amounts as fixed deposits for six months, except in the case of one deposit which was for a period of one year. All these amounts were repaid on maturity and the interest on these amounts was also received by the company.

(3.) The amounts so deposits so deposited by the company have been shown in the balance-sheets of the company for the relevant periods on the assets side under the general heading "loans and advances". Under this heading, on the assets side of the balance-sheet, the amounts of the deposits are shown under the sub-heading "deposits with joint stock companies".