DINDAS SHANKAR THANGE Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Heard the learned Counsel for the parties.

(2.) The present writ petition under Art. 226 of the Constitution of India has been filed by five petitioners who claim to be agents and policy-holders of the third Respondent, Sanjeevani Savings and Investments India Limited, a Company registered under the provisions of the Companies Act, 1956 as a Non-banking financial Company. The petitioners complaint mainly relate to the activities of the third respondent and the manner in which its affairs have been conducted. The respondents No. 4 is the managing director of the Company. The respondent Nos. 5 to 13 are its directors and the respondent Nos. 14 to 17 are officers of the said Company. The writ petition came up for admission before this Court on several occasions and orders have been passed on 19-1-1998, 16-3-1998 and 4-5-1998.

(3.) The third respondent was incorporated on 4-2-1987 and commenced business on 27-3-1987. The Company was initially classified as an investment company and was reclassified as a residuary non-banking company on 12-8-1992. The Company recorded a spurt in deposits since 1992-93. It appears that following the receipt of several complaints regarding the conduct of affairs of the third respondent, the RBI conducted an inspection in 1994 with reference to the position of the Company on 31-3-1994. It is alleged that the inspection revealed an extremely unsatisfactory financial position, violation of the directives of the RBI and poor management and that the net owned funds of the third Respondent Company were negative to the extent of Rs. 1,341 lakhs value of assets was estimated at Rs. 425 lakhs and that there was an accumulated loss of Rs. 1,354 lakhs and the realisable value of the assets was estimated at Rs. 425 lakhs as against defunct liability of Rs. 1845 lakhs.