TaxTMI 
TaxTMI 
2025 (1) TMI 1792
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.... Chandigarh ('Tribunal') in company petition bearing CP No. 146/Chd/Hry/2018 filed by the Respondent i.e., Union of India, Through the Serious Fraud Investigation Office (SFIO). 2. The petition was disposed of with the following order :- "In the meanwhile, the respondent-companies from Sr. No. 1 to 32 are restrained from transferring the assets of the companies. The individual respondents are also restrained from alienating, transferring, encumbering any of their, immovable property and the property comprising of shares, mutual funds etc. and that of the companies No. 1 to 32 till further orders. The respondents are further directed not to withdraw or transfer any amount from their respective banks except for an amount not more than Rs. 1 lac per month by the Directors and Key Managerial Personnel from their individual bank accounts for monthly subsistence for their families but not from the accounts of the companies. The respondents are further directed to fully cooperate in the investigations being carried out by the Serious Fraud Investigation Office in the disclosures of their movable and immovable properties." 3. M/s Adarsh Buildestate Limited and group....
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....ve no objection if any officer from the Ministry of Corporate Affairs is appointed to verify and approve the expenses of the Companies. 11. Without prejudice to the above and in the event this Hon'ble Tribunal accedes to the Appellant's request for permitting payments and for appointing a person to oversee the payments made by the Appellant Companies, this Hon'ble Tribunal may be pleased to appoint a retired officer of the Central Government having experience in finance as a Nominee Director/ Administrative Officer for the Appellant Companies. The appointment of the Nominee Director/ Administrative Officer should be at the expenses of the Appellant Companies themselves, who would verify and approve the legitimate expenses of the Appellant Companies and also meticulously scrutinizing/verifying the end use/ utilization of the s aid amounts, which would strictly be to service legitimate vendors for verifiable expenses for ongoing existing projects. The Respondent respectfully submits that in view of the Respondent's involvement in investigation and litigation before various judicial/ quasi-judicial forums, it may not be appropriate to have a serving officer appointed for this....
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....cer, the Officer may bring it to the notice of this Appellate Tribunal. iii. The person(s), who are operating the Bank accounts of respective Companies may do so only with the approval of the Executive Officer for the purpose of day to day functioning only. No fund or amount should be diverted in favour of any third party without prior approval of the Executive Officer. The Executive Officer will ensure that the expenses for the day-to-day functioning of the Company are cleared, which may include the expenses towards supply of material(s) for construction of the building(s) and other infrastructures, expenses of workmen, employees and officers, electricity charges, water charges, taxes etc. The Serious Fraud Investigation Office is directed to co-operate with the Companies through the Executive Officer and will allow to the Officers through Executive Officer to deal with the Bank accounts etc. for implementation of direction of this Appellate Tribunal. iv. Apart from the salary, wages, payment towards electricity, water charges, taxes if there is any doubt with regard to expenses to be cleared in favour of one or other party, the Executive Officer will ask the con....
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.... of the Prevention of Money Laundering Act of 2002 ('PMLA') and the said order was confirmed on 31.03.2020. 8. Counsel for Respondent has further submitted that main company i.e., M/s Adarsh Buildestate Limited has slipped into Corporate Insolvency Resolution Process ('CIRP') vide order dated 29.08.2022 and since then it is in control of the Resolution Professional appointed by the Tribunal. 9. It is further submitted that all these appeals have already been disposed of vide order dated 07.12.2018 which is reproduced as under;- "The 'Union of India' moved an application under Section 241 read with Section 242 of the Companies Act, 2013 in public interest before the Tribunal alleging the acts of serious fraud against 'M/s. Adarsh Buildestate Limited' and other companies and their respective Directors, officers and relations. In the said petition (C.P. No. 146/Chd/Hry/2018), the National Company Law Tribunal, Chandigarh Bench, Chandigarh (for short, 'the Tribunal') passed the impugned interim order with the following directions: "In the meanwhile, the respondent-companies from Sr. No. 1 to 32 are restrained from transferring the assets of the companies. The in....
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....appoint a retired officer of the Central Government having experience in finance as a Nominee Director/ Administrative Officer for the Appellant Companies. The appointment of the Nominee Director/ Administrative Officer should be at the expenses of the Appellant Companies themselves, who would verify and approve the legitimate expenses of the Appellant Companies and also meticulously scrutinizing/verifying the end use/ utilization of the s aid amounts, which would strictly be to service legitimate vendors for verifiable expenses for ongoing existing projects. The Respondent respectfully submits that in view of the Respondent's involvement in investigation and litigation before various judicial/ quasi-judicial forums, it may not be appropriate to have a serving officer appointed for this purpose. 12. That in view of the facts, reasons and averments stated in the foregoing paragraphs, it is most humbly prayed that this Hon'ble Tribunal may take a view accordingly in the interest of justice." 2. The following statement has been made by the Union of India in their enclosure: "The following name is proposed by the Serious Fraud Investigation Office, Ministry o....
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.... will ensure that the expenses for the day-to-day functioning of the Company are cleared, which may include the expenses towards supply of material(s) for construction of the building(s) and other infrastructures, expenses of workmen, employees and officers, electricity charges, water charges, taxes etc. The Serious Fraud Investigation Office is directed to co-operate with the Companies through the Executive Officer and will allow to the Officers through Executive Officer to deal with the Bank accounts etc. for implementation of direction of this Appellate Tribunal. iv. Apart from the salary, wages, payment towards electricity, water charges, taxes if there is any doubt with regard to expenses to be cleared in favour of one or other party, the Executive Officer will ask the concerned Board of Directors/ Officers of the Company to give clarification. On receipt of such clarification and if satisfied, the Executive Officer may clear the bills. v. The Appellant Companies will not undertake any new project(s) and will complete the projects in hand. Only on completion of the present projects, the companies may take steps for new projects, with the approval of the Execu....
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....s has withdrawn the amount from M/s. Adarsh Buildstate Ltd. or any other company after the interim order was passed by the Tribunal or the modified order dated 4th October, 2018 passed by this Appellate Tribunal. In case the Tribunal is satisfied that one or other appellant has withdrawn any amount from company, in such case the Tribunal may pass appropriate order and may also modify the order dated 4th October, 2018 of this Appellate Tribunal to the extent of amount already ordered to be released in favour of such appellant. 4. We make it clear that we have not gone into the merit of the claims and counter-claims, which is required to be looked into by the Tribunal at the time of hearing. 5. We also make it clear that 'Mr. Kuldeep Kumar Dangi' having already allowed a sum of Rs. One Lakh by the Tribunal, we have not modified the order passed by the Tribunal so far it relates to the said appellant. 6. The appeals stands disposed of with the aforesaid observations and directions. 7. We make it clear that the aforesaid order will not come in the way of 'Union of India' to move appropriate application for initiation of contempt proceedings if any of....