ADMINISTRATOR BISCOMAUN Vs. RAMADHAR SHARMA

JUDGEMENT

(1.) IN the matter relating to the affairs of the Bihar State Co -operative Marketing Union Limited (in short Biscomaun) for whatever the affidavit is worth as it has been filed today, it shows a deplorable and a callous state of affairs. Firstly, the Administrator appointed by the court makes a statement that the present assessment is based on old and past records and whatever has been placed before the court this is his personal evaluation. Clearly, the Administrator is submitting that with records not available the exact up -to -date market value on the assets and liabilities of BISCOMAUN could not be evaluated. According to the Administrator, on the assets as of date on the basis of whatever records were available to him, the assets of BISCOMAUN have been classified into three categories (a) unencumbered properties of BISCOMAUN valued at Rs. 139.98 crores (b) properties constructed on government land comprising of Industrial Area Agriculture Farm Lands, Khasmahal (government land as government estates) and the saleable value of constructions on these land being Rs. 15.695 crores (The value of land has not been evaluated) (c) constructions on block land allotted by the government in agriculture marketing yard premises and on the Large Agriculture MuIti Purpose Societies (LAMPS) the saleable value of construction is about Rs. 27.408 crores. The total assets in this context may stand to Rs. 183.353 crores.

(2.) THE court has been informed that the liabilities of BISCOMAUN relating to salary, retiral benefits etc. may stand to Rs. 80,95,98,737/ -. The amounts recoverable from the creditors, the State Government not excluded, may amount to Rs. 48,06,08,299.73 crores. The audit balance sheet of BISCOMAUN is available only up to year 1990 -91. The Administrator records that the accounts position, the profit and loss or credit and debit, for the last 12 years without audit does not reflect the correct assets and liabilities of BISCOMAUN. He further submits that a detailed review on the files and papers connected with the issues on which indebtedness or credit wothiness are to be examined, has been hampered without the record and even field survey of the properties are not available. The Administrator further submits that what has been presented to the court by the supplementary affidavit may at best be taken for consideration on the basis of the records available and the personal assessment of officers, and there may be a possibility that there may be a variation on the assessment of assets and liabilities and this variation may range between 15% to 20%. The Administrator further submits that the State Government has not cleared its outstanding dues as rent to BISCOMAUN which may stand at Rs. 93,10,570.60. It is contended that a rehabilitation package of BISCOMAUN is under consideration of the government. The date of contemplation of this rehabilitation package is not given in the affidavit. Upon the enquiry of the court the Additional Advocate General 1 informed that it is under consideration for the last four months.

(3.) PERHAPS , the Administrator may be correct that he has not been able to lay his hands on the correct evaluation of assets and liabilities about this corporate body. At the bar a counsel, who appears for other parties but in matters in which the BISCOMAUN is a party, placed before the court an unaudited report under section 44 AB of the Income -Tax Act, 1961. relating to the year 1997 -98. This section is about unaudited of accounts of certain persons carrying on business or profession. The counsel who presented this unaudited report is Mr. Navin Prasad Singh. This report is on record of this case. This report only fortifies that an audit was done for the year ending 31 March 1998 by the BISCOMAUN by engaging Chartered Accountants. A perusal of this report shows the liabilities prior to 31 March 1998 as Rs. 2,77,36,80,567.25. In the current year relating to the assessment of liabilities stood at Rs. 3,01,87,73,344.57. But the cash and bank balance with BISCOMAUN in the current year which was ending on 31 March 1998 stood as : Cash at Bank as per Sch. "F" Rs. 9,18.357.30, Cash at Depot Rs. 4,02,312.68 and remittance in transit Rs. 3,54,922.64. The activities of BISCOMAUN have come to a grinding halt but the information presented before the Income -Tax department shows that any income of Rs. 28,02,35,221.08 has been offset by the expenditure. The details are as follows : The Bihar State Co -Operative Marketing Union Limited, Patna, (BISCOMAUN) Proforma Profit & Loss Account for the Year Ended 31st March 1998. Particulars Amount By Salary & Allow 16,97,40,000.00