before the company law board - Company Law Board Mumbai Bench

7this regard under Sec.292(1)(e) of the Act. Rs.6,00,000/- was advancedas loan to M/s.Man Singh International Limited during the year ending31.3.2001 in violation of Sec.292(1)(e) of the Act. The aforesaid loansaggregating to Rs.64 lacs were diverted by the Company for the personalbenefit of R2 & R3 who are the only beneficiaries in the deal. R6 hasstated in his complaint that all these payments have been made by R2without the knowledge and consent of R6 or approval of the Board ofDirectors. e. Misappropriation of funds of the Company upon sale ofproperty: A sum of Rs.10 lacs was advanced to M/s. Ansal HousingInfrastructure Ltd., Bhopal for purchase of immovable property by R1.No transfer of property has taken place and the said amount has beenwritten off as doubtful debt. f. Salaries drawn from two companiesby R2. R2 while acting as Whole Time Director in R1 also got himselfappointed as a Whole Time Director in M/s. Nisha Polymers IndustriesLtd. for a period five years and was drawing remuneration from both thepublic companies in contravention of the provisions of Section 269 ofthe Act. g. Fabrication of records regarding notice to be issued tothe Members for the meeting: Shri Harish K. Sahu complained thatAnnual Accounts for the years 2002, 2003 signed by R2 and R3 asdirectors were not distributed to all the shareholders of R1 in which 80%of the shares are held by the public. h. Wongful claim ofdepreciation and accounts not correct and true. Depreciation has beenwrongly provided in the accounts on a car, cost of which has been debited toCP 28/2010Union vs Gwalior