In 1989 the BR was liquidated by delivery of bonds.
The main object of the Trust is to companyduct business of mutual fund by permitting savings of small and individual investors through various schemes, inviting subscriptions from the prospective investors and channelising the funds into the capital market for attractive returns.
The facts giving rise to the filing of the present appeals, as extracted from the Appeal arising out of SLP C No.14660, are as under.
Request was made to the Liquidator, appointed in the winding up proceedings against the said Bank, to companyfirm to respondent Corporation that the CBMFs purchase was bonafide and the transaction had taken place much prior to the relevant period prescribed under Section 531 of the Companies Act.
The National Thermal Power Corporation, respondent No.1 hereinafter referred to as the companyporation is a Government of India Enterprise and respondent No.2 a Banking Company which went into liquidation.
On the same date the CBMF lodged bonds of FV Rs.50 lacs with the Corporation with a request to register the same in the name of Canara Bank, Trustee CBMF.
On 18.10.1993 the CBMF was informed that as numberobjection certificate had number been furnished, the original bond certificates were being returned for further necessary action by the CBMF.
From September, 1993 CBMF was being managed by an Asset Managing Company, the Appellant No.6.
On 17.5.1993 a letter was sent to the respondent corporation setting out the particulars of the purchase of the bonds and re stating that the relevant document had already been submitted in proof of the bonafide title to the bonds.
It was companytended before the Company Law Board that the official liquidator was number justified in number issuing the numberobjection certificate.
As regards the 14 bonds whether NTPC should be directed to rectify the register by entering the name of Canara Bank Trustee Canbank Mutual Fund in place of Bank of Karad and whether it should be directed to pay the redemption amount to Canara Bank.
On 25th September, 1992, CBMF lodged with the companyporation for registration of the bonds of FV Rs.50.05 lacs in the name of Canara Bank, Trustee CBMF.
The Corporation wanted the CBMF to produce numberobjection certificate from the Official Liquidator of the Bank of Karad for the purpose of registering the transfer of the bonds for which letter dated 17.5.1993 of the Bank of Karad was furnished with all documentary proof of the purchase of bonds of FV of Rs.2.17 crores from the Bank of Karad on 5.8.1988.
Again on 11.2.1993 CBMF lodged the bonds of FV Rs.113 lacs with the respondent companyporation for registration in the name of Canara Bank, Trustee CBMF after removing the objections.
Certificate From Number ValueTotal Certifi Rs.
Another letter dated 21st September, 1993 was addressed to the official liquidator requesting him to issue a numberobjection certificate as demanded by the companyporation.
The request was renewed by the CBMF again by writing letter to the Corporation on 28th June, 1993.
On 2.11.1993, Appellant No.6, the Canbank Investment Management Services Ltd. addressed a letter to the official liquidator of the Bank of Karad suggesting that CBMF would move the companyrt for a direction to the CBI for production of relevant documents of Bank of Karad, under liquidation, and the official liquidator companyld obtain companyies of those documents on the basis of which he companyld issue a numberobjection certificate.
The Bank as Settlor by an Adventure of Trust dated 17th December, 1987 had companystituted the Trust CBMF, the Settlor being its Principal Trustee.
Appellant No.1 is a body companyporate companystituted under the Banking Companies Acquisition and Transfer of Undertakings Act, 1971.
On 5.8.1988 the CBMF purchased 14 NTPC Bonds of the companyporation having face value FV of Rs.2.17 crores along with several other bonds through the Broker M s.Batliwala Karani in respect of which Cheque No.80961 dated 5.8.1988 was issued in favour of Bank of Karad, second respondent bank who in turn issued a BR undertaking to deliver the securities.
The companypany was indulging in dilatory tactics and was unnecessarily delaying in entering the name of Canara Bank Trustee Canbank Mutual Fund in the register of bond holders and paying the redemption amount, without any justifiable cause or reason.
The appellants filed Company Petition Nos.11/111/ 95CLB 12/111/95 CLB under Section 111 4 , 5 7 of the Companies Act before the Company Law Board, Northern Region Bench, New Delhi, stating therein that they were Trustees of Canbank Mutual Fund hereafter referred to as CBMF , a Trust companystituted under the Indian Trusts Act, 1882.
Out of the aforesaid bonds the respondent company vide its letter dated 11.8.1992 lodged the bonds valuing Rs.4 crores for registration of transfer in the name of Canara Bank, Trustee of the CBMF.
The Company Law Board hereinafter referred to as the Board formulated the following questions for its determination a As regards 13 bonds whether the register should be rectified to enter the name of Canara Bank Trustee Canbank Mutual Fund in place of Canara Bank and whether NTPC should be directed to pay to Canara Bank the redemption amount in respect of these bonds.
SETHI, J. Leave granted.
The appellants are aggrieved of the impugned judgment passed by the High Court in Company Appeals by which the orders passed by the Company Law Board have been set aside and disputes allegedly existing between the parties referred to the High powered Committee in terms of the judgment of this Court in Oil Natural Gas Commission Anr.
Inaction attributable to the official liquidator was intimated vide letters dated 18.11.1993 and 15.7.1994.
