BIHAR STATE PHARMACEUTICAL LIMITED Vs. SHAMIM ANSARI

JUDGEMENT

(1.) THE two matters before the Court reflect a very sad stale of affairs on the manner in which the public sector undertakings in Bihar, particularly companies incorporated under the Indian Companies Act under the label &aposGovernment Companies&apos (under Section 617) have been managed.

(2.) THERE are two options before the Court. Piece by piece and for each act on default this Court could require the Registrar of Companies to examine the details and furnish information. If it was a matter of one or two or three defaults in one or two companies the Court could have required the Registrar of Companies to make out a report and furnish it before the Court. But, the situation before the Court as is being noticed on a preliminary report filed by the Registrar of Companies is scandalous. Though, the report of the Registrar of Companies is at present brief, certain facts highlighted by the Registrar of Companies are sensational.

(3.) THE Registrar of Companies reports that the entire funds which were received from the Bihar Government were utilised in investments into shares of subsidiary companies and other companies by way of giving loans and advances to subsidiary companies and to others, and that the Company has not earned anything from its loans and investments except some normal earning. The subsidiary companies have been named. The other companies have also been named.