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22. Now, it is in this background that the merits of the challenge will fall for determination. The Settlement Commission has noted in its order that in order to scrutinise the genuineness of the transactions it had directed the petitioner to produce relevant records such as minute books, attendance registers of AGMs, dispatch registers, share certificates and authorization of proxy forms amongst other documentary material. The order of the Settlement Commission indicates at least fourteen reasons on the basis of which the Commission formed its view in regard to the genuineness of the transactions. These may be now briefly summarized:

Both the Resolutions were in the same format and couched in identical language including the same grammatical mistakes; (xii) Although share applications made by Oleander Manufacturers were filled up by hand, the ones that were typed had the same type face as those in the application of Tristar Agencies. Some of the printed forms which were used were of the year 2000. It was surprising that the company was still using eight year wp-397-2011 old forms when its networth was such that it commanded a premium of Rs.990/- per share of Rs.10/-; (xiii) The attendance register for the AGM held on 25 September 2009 contained over writings. One of the Directors who attended on behalf of Oleander Manufacturers was actually not a Director of the company. The relevant proxy authorisation forms were not produced nor was any proof of communication to the share holders in regard to the convening of the AGM or even for the despatch of the share certificates produced; (xiv) Both Oleander and Tristar are companies being run from a single room as mentioned in their addresses. Initially the promoters of Oleander Manufactures were two brothers and in the case of Tristar Agencies, spouses who were no longer associated with the companies. The Bank accounts, copies of which were furnished, revealed that although huge sums were deposited and withdrawn, a major portion of the income was from sale of shares of which there were no details. The net income is meager in both cases and is not commensurate with companies who could have afforded to make such huge investments in shares of an unknown and unlisted company by payment of such a high premium.