regulations and guidelines. It is
pointed out that the alleged misstatement in the prospectus is not a
matter which is covered by Section ... reference to
Section 62 which talks of civil liability for misstatement in prospectus
and Section 63 which talks of criminal liability for misstatement in
prospectus
Meeting."
8. It was alleged that the Company made misstatement
in the prospectus and that the IPO proceeds were
diverted and misutlised ... account of the aforesaid, the WTM concluded
that such misstatement in the prospectus of the
Company was deliberate and part of a larger design
Raymond Synthetics Ltd. And Ors vs Union Of India And Ors on 4 February, 1992
genesis of the complaint. Allegation is that there is a misstatement in the prospectus issued by the petitioners while raising public issue inasmuch ... right in his submission that the complainant can prove misstatement in the prospectus only by showing that the funds were not utilized for the purpose
follows:
"Section:62. Civil liability for misstatements in prospectus.
(1) Subject to the provisions of this section, where a prospectus invites persons to subscribe ... context of the liability for misstatement, states as follows:
" Section 62 : Civil liability for misstatements in prospectus.
(1) to (5) .....
(6) For the purposes
action against the applicants. Section 63 deals with criminal liability for misstatement in prospectus. It states that Where a prospectus issued after the commencement ... applicants are liable for making any false or deliberate misstatements in the Prospectus. Sanctioning of loan by the Financial institutions, granting licenses by the respective
provision deals with the "civil liability" for making misstatement
in the prospectus. With regard to the complaint under Section ... reads as under:-
"62. Civil liability for misstatements in prospectus.
(1) Subject to the provisions of this section, where a
prospectus invites persons
provision deals with the
"civil liability" for making misstatement in
the prospectus. With regard to the complaint
under Section ... reads as under:
"62. Civil liability for misstatements in
prospectus. (1) Subject to the provisions
of this section, where a prospectus
invites persons
company, as per prospectus
and he authorised issuance of that prospectus through his attorney Mr. Ravish
Kumar Gupta. As per the prospectus, the Lead Managers ... Under both these sections, any person, who authorises issuance of
such prospectus containing misstatement and containing statement, which are
false, deceptive or misleading
defendants to the plaintiff for losses caused due to
misstatements in the prospectus and negligence in the performance of
statutory obligations by the defendants. Consequently ... duties
qua debenture holders such as the plaintiff and made misstatements in the
prospectus.
(iii) Financial statements of DHFL, which were audited by the
ninth
