In spite of the rejection the share money companylected from different investors was held by the appellants and numbere of the share holders were either informed or were repaid.
Such application which was made on behalf of the companypany was rejected by the stock exchange.
It was alleged that after the registration of the companypany aforesaid as a Public Limited Company, the appellants as managing director and directors issued prospectus inviting public subscriptions of 42,000 equity shares and 3,000 preference shares.
P. Singh, J. The appellants on the relevant date, were managing director and directors of a Public Limited Company registered as M s. Bihar Cable and Wire Industries Limited hereinafter referred to as the Company .
A case was instituted by the Central Bureau of Investigation hereinafter referred to as the CBI against the appellants and others on basis of a companyplaint made by the then Deputy Secretary, Ministry of Industrial Development and Company Affairs, Government of India.
It was given out by the appellants to the investors that application was being made to the Calcutta Stock Exchange for enlisting the shares of the companypany for official quotation.
