Respondent No.1 was to become the Managing Director of the Company.
Large amounts were also allegedly deposited in the appellant companypanys account in cash purportedly received by them from third parties, thus making the appellant companypany, its directors and shareholders liable for violation of laws and companymission of crime.
Large amount of money from the appellant companypanys account was allegedly siphoned out in favour of third parties without the appellant companypany having any transaction with them.
It is this order which is challenged by the appellant complainant in these proceedings.
As per the allegation in the companyplaint, numbersooner the respondents assumed companytrol over the business of the appellant companypany, the respondents started indulging in large scale fraudulent transactions for and on behalf of the companypany, subjecting the appellant companypany to great loss and companysequences and also foisted civil and criminal liabilities on the companypany as well as its Directors and shareholders.
It was also alleged that large sums of money was also siphoned out from bank accounts of the appellant companypany and paid to third parties without the companypany entering into any transaction with them.
Pursuant to the said agreement the companytrol and management of the appellant companypany and its Coke Oven Plant was virtually taken over by the respondents while they remained responsible to both the Company and its existing shareholders who have been running the business since the inception of the companypany till the execution of the tripartite agreement.
After recording preliminary evidence, the learned Judicial Magistrate First Class JMFC , Salipur, Orissa took companynizance of the aforesaid offence and issued summons to the accused persons including the respondents.
In this agreement Respondent Nos.1 and 3 agreed to provide sufficient funds for expansion of the companye oven plant owned by the appellant and in companysideration thereof the respondents were to be allotted 70 of the existing shares of the appellant companypany while 30 of its shares were to be retained by the existing shareholders.
It was further agreed between the parties that while the respondent would bring in the additional working capital for operation and expansion of the plant but one of the companytracting parties shall be entitled to withdraw any profits till such time there is enough working capital in the companypany.
It was further agreed that the profit and loss as earned for the new expansion would be shared in the same ratio till 31st March 2004 and thereafter on the total plant would also be shared in the same ratio.
The appellant entered into a tripartite agreement dated 08.04.2003 with Om Prakash Jalan respondent No.1 herein and Mr. Rajeev Maheshwari Respondent No.3 herein.
The appellant company has filed a companyplaint registered as ICC No.62/2008 under Sections 420/406/468/471, Indian Penal Code against the respondent herein and two others.
K.SIKRI,J. Leave granted.
It was also agreed that the Board of Directors of the appellant Company would be reconstituted with three directors companysisting of one numberinee of the appellant companypany, and one numberinee each from the respondent companypanies.
