TaxTMI 
TaxTMI 
2014 (7) TMI 17
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.... accounts of the company so that the company may continue with the credit facility available from the Respondent Bank. Precisely speaking, the Respondent-Company is having the cash credit limit of Rs 30 lakh from the Respondent No 5 Bank (State Bank of Bikaner & Jaipur, Branch VKI Area. Jaipur) and the said account was due for renewal on 08.03.2013. However, as stated in the Company Application, on account of the dispute having been pending before the Hon'ble Company Law Board, the Auditor of the company refused to continue with the audit work till the matter is resolved between the parties and therefore, the facility could not be renewed by the Bank. Now, on 30.09.2013, the Respondent Bank has issued a letter to the Respondent Company ....
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....ct, as per the mandate of the Companies Act, 1956, before submitting the balance sheet and the profit and loss account of the Company to the statutory Auditors of the company for their report thereon, every balance sheet and the profit and loss account shall be approved by the Board of Directors before they are signed on behalf of the Board in accordance with the provisions of the Companies Act, 1956. In the present case, admittedly no Board meeting of the Company has been called since October, 2011 and particularly the Petitioner who claims to be the manager of the company managing the affairs of the Company, has not called for any Board meeting for the purpose of consideration of the Balance sheet and the profit and loss account for the c....
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....roups of the shareholders and unless and until, a direction is given by the Hon'ble Company Law Board, he will not be able to audit the accounts of the Respondent-Company. Further, it has been reiterated that the Respondents Company is having cash credit limit of Rs 30 lakh from the Respondent bank and the said cash credit account was due for renewal on 08.03.2013. Further, the said limit has been continued on ad hoc basis and now, the Respondent bank is insisting upon submission of the audited financial statements. The Petitioners Advocate has also highlighted that on 13.03.2013, this Hon'ble Board observed that for the smooth running of the company, it is necessary that the account of the bank be operated in the same way as was be....
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....on 215 provides that every balance sheet and the Profit & Loss account shall be approved by the Board of Directors before they are signed on behalf of the Board in accordance with the provisions of the Companies Act. 1956. However, on the contrary, no Board meeting has been called since October, 2011 and in the Company Petition No 124 (ND)/2012, the Petitioners have challenged appointment of Respondent Nos 3 & 4 as Managing Director and Director respectively. Apart from this, it is also highlighted by the Respondents Advocate that this Hon'ble Board is also seized with the issue of appointment of the Petitioner Nos 1 & 2 as Directors of the Company. 5. Having gone through the averments made in the Company Application, reply and argumen....