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Through : Mr. Harpawan Kumar Arora, Adv. for Committee-GFIL.

Mr. Neeraj Malhotra, Adv. for SEBI.

CORAM:

HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE R.V. EASWAR MR. JUSTICE S. RAVINDRA BHAT (OPEN COURT) %
1. This application seeks appropriate directions from the Court, to the Court appointed Committee to carry out the affairs and manage the properties, and sell the assets of the Golden Forests (India) Ltd and its group companies.
2. The brief background of the case is that the Golden Forests (India) Ltd (GFIL) was incorporated in 1987. Between the years 1991 and 1997, its promoters set up over 100 companies, including Golden Tourist Resorts and Developers Ltd (1991), Golden Lease Finance Ltd (1994) Golden Projects Ltd (1996), Himachal Country Resorts Ltd, etc (hereafter called "GFIL group"). Golden Projects Ltd introduced a number of investment schemes promising handsome returns lured investors and depositors, and in 9-10 years collected several hundred crores of WP( C) 1399/2010 Page 1 rupees. Huge tracts of lands and property were acquired by it; likewise a large number of properties were acquired in the name of Golden Tourist Resorts and Developers Ltd and others in the name of Himachal Country Resorts Ltd and some other companies.
3. The GFIL group were controlled controlled by a family consisting of A. L. Syal, R. K. Syal, Neena Syal, Pamila Syal, Bimla Syal (since dead), H. K. Sinha (Brother in Law of R. K. Syal). In 1997, the Securities Exchange Board of India (SEBI) inquired into the activities of GFIL group and a two member Committee was constituted. Its report was submitted on 21-04-1998. The report highlighted financial and other irregularities committed by the company. A writ petition was filed in the Bombay High Court by SEBI in which an order was passed against GFIL restraining it from alienating the properties; a similar order was passed by this High Court in the same year. SEBI on 09-01-1998 made an order prohibiting the company from alienating its properties. Justice M. L. Pendse (Retired) was appointed as Receiver and certain properties were earmarked for sale, but the Receiver could not sell the properties. GFIL, in the meanwhile continued to accept deposits, carrying business and alienating properties. In this background, winding up proceedings, being CP No 60/ 2001 (National Investor Forum vs. Golden Forests (India) Ltd) was preferred before the Punjab & Haryana High Court in 2001. The Company Judge by order dated 18.6.2003 directed that all properties of the company would be managed, controlled, regulated by a provisional liquidator, who shall have power to sell the moveable and immovable property. Further, vide order dated 20.6.2003, Justice R.N. Aggarwal was appointed Provisional Liquidator.
4. The company petition and all other proceedings pending against the GFIL pending in various High Courts throughout the country were transferred to the Supreme Court by order dated 12.9.2003, in a transfer petition filed by SEBI (Securities and Exchange Board of India Vs Golden Forests (India) Ltd. & Anr. -

TP No. 696 of 2002). CP 60/2001 was also transferred to the Supreme Court and numbered as T.C. (Civil) No. 68 of 2003. The Supreme Court by its order dated WP( C) 1399/2010 Page 2 19.08.2004 constituted a committee consisting of Justice K. T. Thomas (Retired Judge of the Supreme Court), an officer to be nominated by the Reserve Bank of India (RBI) and an officer to be nominated by SEBI, and further ordered the committee to take into its custody all assets of the company, wherever they may be, to issue advertisement in Newspapers calling upon all the creditors of the company to submit the claim(s) before the Committee. Mr. Justice K. T. Thomas (Retd.) requested the court to be relieved and accepting that request the Supreme Court on 10-09-2004 appointed Justice R. N. Aggarwal (Retd.) in his stead. Justice Agarwal was earlier the Provisional Liquidator. RBI appointed Mr. P. K. Arora, DGM, RBI, Chandigarh as its whole time member on the committee. The SEBI appointed Mr. S.K. Sharma as a member on the Committee. Subsequently, the Supreme Court, on 05.09.2006, replaced Mr. P. K. Arora, DGM, RBI and Mr. S.K. Sharma, DGM, SEBI with Mr. H. L. Randev and Mr. B. S. Bedi, both former District and Sessions Judges were appointed Members on the Committee.