AI Drafter 
TaxTMI 
TaxTMI 
2013 (4) TMI 1007
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....e Respondents-Union of India : Mr. Mokhtar Khan, ASGI For the RBI : Mr. Pandey Neeraj Rai, Adv. ORDER Heard learned counsel for the parties. Pursuant to the notices issued in the instant cases, the Ministry of Corporate Affairs, Registrar of Companies-cum-Official Liquidator, Bihar & Jharkhand, National Capital Territory of Delhi & Haryana, the Securities and Exchange Board of India as well as RBI has also appeared. Learned counsel for the RBI, however, submits that he has appeared in W.P. (C) No. 1196 of 2013. However, learned counsel for the RBI is directed to appear in all these matters. Learned counsel for the petitioners shall supply copy of the pleadings upon the learned counsel for the RBI, Mr. Pandey Neeraj Rai by Monday and necessary corrections be carried out in respective writ petitions by learned counsel for the petitioners to implead the RBI through its Regional Director, Regional Office, Patna, in all such petitions, in which it is not already a party. The common grievance, in these writ petitions, raised on behalf of the petitioners is that the Respondents-District Authorities of the Government of Jharkhand have sealed the business premises of th....
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....idator submits that the respondents are also in the process of inquiring into the affairs of the said Companies, for which time is required. I have heard learned counsels for the parties at some length. The petitioners had come before this Court alleging that the impugned action of sealing by the District Authorities of the State of Jharkhand was without any authority of law and no notice was given to them to defend themselves against any alleged violation of law. However, as already indicated hereinabove, this Court found it necessary to implead the statutory authorities, who are under the mandate of law to regulate the affairs of such companies and take action, if any violation are found out of such statutory enactments like SEBI Act and other allied Acts and their Rules and Regulations, the RBI Act, Companies Act, the Regulations/Guidelines framed thereunder as also Acts and Rules regulating the affairs of Multistate Co-operative Society. The Respondents-District Authorities had undertaken the act of sealing of the business premises of the petitioners in a preemptive exercise for protecting the interest of investors as it appeared to them that the provisions of the SEBI Act a....
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....f Companies shall inquire into the affairs of the Companies in respect of the compliance of the respective statutory provisions thereafter within a period of eight weeks subject to any extension as may be allowed on their requests. The petitioners shall cooperate in the said inquiry in all possible ways and it is made clear that if the petitioners fail to co-operate in the inquiry by the Statutory Authorities, it will be open to the Statutory Authorities to take any decision as are permissible in law. v) During the aforesaid period of inquiry, the petitioners shall not undertake any new business of the company or enter into fresh instrument with any party/investor and they will also not advertise in respect of their business during the said period. Petitioners also undertake to give an undertaking to that effect by way of an affidavit. vi) During the course of inquiry, in case any existing customers/investors of the company, intends to make any deposit or investment, the same shall be deposited in an interest bearing Escrow Account opened in a Nationalized Bank under the modalities laid down by the Official liquidator-cum-Registrar of Companies. The petitioners sh....
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....e petitioners. It will be open to the investing/prosecuting agency also to take recourse as are available under the procedural and substantive law in respect of the alleged offence against the petitioners' company as also to seek production of such materials/documents etc. which have been seized from the petitioners' premises and kept in custody of the Official Liquidator after preparation of inventory or are also found elsewhere during the course of investigation. It is also made clear that the observations and directions which are being passed hereinabove, shall not prejudice the case of the petitioners' so far as the criminal proceedings are concerned. Petitioners are allowed to file their respective affidavits with their undertakings as aforesaid by Tuesday i.e. on 30.04.2013 The State official shall hand over any such material seized during the course of sealing processes to the official liquidator while preparing the inventory of the seized article. It is once again made clear that Registrar of Company-cum-Official Liquidator would be responsible for the safe custody of the seized materials till the conclusion of such inquiry and any statutory authority will....