Full Judgment
2. Subsequent to the above order the company could not keep up the schedule as contained in the order and could make only part payments against the outstanding deposits. Towards the end of 1994, the company made an application to this Bench for further extension of time up to May, 1997, due to the financial difficulties consequent to the severe competition faced by the company from multinational giants. Keeping in view the situation in which the company was placed and also keeping in view the interests of depositors the company was allowed an extension up to December 31, 1996.
3. The company has now presented an application in March 1996, for further extension of time up to September 1998, for repayment of the entire deposits. The company had also confirmed in its application that the interest up to Rs. 80 lakhs was paid up to March 31, 1995, in compliance with the order of the Bench. This application was being considered by the Bench. During the hearings on various dates the company gave the impression to the Bench through affidavits that : (a) It will arrange to dispose of certain valuable properties of the holding company and repay all the deposits.
(b) It will sub-lease certain valuable properties in the commercial areas in New Delhi and with the advance rentals and security amount shall arrange to pay the entire deposits.
(c) It will arrange a second charge on the properties of the holding company so that the depositors can be fully secured.
4. Though the above options were pursued for some time ultimately due to some reason or the other none of these could materialize.
5. At today's hearing Shri Ajit Singh, chairman and managing director of the company filed an affidavit stating that : (a) the company shall pay all its depositors outstanding interest for the period ended March 31, 1996, by May 17, 1997.
(b) by the close of July 31, 1997, the company shall pay to all its depositors outstanding interest for the period ended March 31, 1997, as also repay 35 per cent, of the principal amount to those depositors who have not already been paid.
6. Keeping in view the interest of the depositors at large the affidavit of the chairman and managing director has been accepted by the Bench. The application of the company for further extension of time is now kept pending without finally disposing of the same.
7. While the company shall adhere to the payment as set out in the affidavit filed today it shall also comply with the following : (a) File an affidavit of compliance with regard to payment to all depositors in full who have claimed repayment under indigent circumstances provided they have attached sufficient proof of the same. This affidavit shall be filed by April 30, 1997, after taking into account all the applications received up to April 26, 1997.
(b) The company shall continue to entertain applications for full repayment under indigent circumstances in future as well if satisfactory evidence is attached and shall make full repayment within 15 days of receipt of such applications.
(c) The company shall file an affidavit of compliance before May 31, 1997, with regard to the interest payment up to March 31, 1996, as undertaken in the affidavit filed today by the chairman and the managing director.
(d) The company shall file another affidavit of payment by August 14, 1997, in respect of all payments of interest up to March 31, 1997, and also repayment of 35 per cent, of the principal amount to all depositors as undertaken in the affidavit.
8. During the hearing an application was filed by S. Chand and Co. Ltd. in respect of repayment of an intercorporate deposit of Rs. 10 lakhs by the company. This application is hereby dismissed as such intercorporate deposits do not come within the purview of Section 58A(9) of the Act. Applications were also filed by Ram Lal Paul and Govind Ram Kathuria for contempt against the company in view of the company not having complied with the earlier orders filed by the Bench.
These applications are kept pending for further consideration and in the meanwhile the company shall file its reply to these applications.
9. The company is hereby directed to give immediately suitable publicity through at least two newspapers in English and Hindi circulated widely in and around Delhi for the information of all depositors at large about the undertaking for repayment as submitted by the chairman and the managing director.
10. The company and the chairman and the managing director, Shri Ajit Singh are liable jointly and severally for adhering to the schedule as contained in today's affidavit. Any default in repayment as undertaken in today's affidavit shall be considered as a default on the part of the company and Shri Ajit Singh under Section 58A(10) besides Section 58A(5) and (6) of the Act and shall attract immediate penal action against them. A copy of this order shall be sent to the concerned Registrar of Companies, viz., Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh who shall initiate immediate action in case of any default on the part of the parties. He shall also make a mention of these proceedings before the Hon'ble Punjab and Haryana High Court before which court the company has reportedly undertaken to abide by the orders of this Bench in regard to repayment of the fixed deposits.