4 brothers asked to pay back share value
Jamshedpur, February 25: A double bench of the Supreme Court directed four brothers of Nand Kumar Singh to pay back the former’s share and interest in the six assets of Adityapur based Indica Composite Company.
The bench comprising Justice Ajay Rastogi and Justice Bela M. Trivedi, while giving the verdict in the case of Indica Composite Pvt Ltd vs. Nand Kumar Singh on February 21 directed four brothers of Nand Kumar Singh namely Rajeev Ranjan Singh, Abhijeet Singh, Sanjay Singh and Rakesh Singh to deposit a total of six assets of Indica Composite Company and pay Nand Kumar Singh his 23 percent share in the company on the basis of valuation of Flat Number 703 as on April 1, 2009 and the total valuation of the share between 01.04.2009 to 31.03.2023 pay interest at 12% interest rate till 2023.
The six assets include, C-43, C-4 both in Adityapur Industrial Area, H-7 at Chinhut Industrial Area in Lucknow, 4. 22 in Goyla Industrial Area Lucknow,T6-504 an office in Paraswanath Planet, Gomti Nagar, Lucknow and flat number 703 in Shri Sumukh Heights, Anandnagar, Jogeshwari, Mumbai.
The Supreme Court also ordered the four brothers of Nand Kumar Singh to return the loan given by Nand Kumar Singh’s other company Innova Enterprises along with 12% interest for 14 years.
It is known that Nandkumar Singh made all the investments in Indica Composites Pvt Ltd through his other company Innova Enterprises Pvt Ltd and with the aim of giving work to his brothers and making them able to support their families. He not only allotted shares in their name but also made them director in his company.
Taking advantage of this situation, within just 39 days in August and September 2010, Nand Kumar Singh’s brothers, along with chartered accountant Ramakant Gupta, ousted Nand Kumar Singh from the company and took all his shares in their name and by by depositing fake statutory documents in the Registrar of Companies usurped his company.
It is to be noted that the Company Law Board, while accepting the arguments of Advocate Akhilesh Srivastava on 24.09.2013 declared the share allotments and transfers done by the brothers of Nand Kumar Singh as illegal but did not reinstate Nand Kumar Singh as director and he was asked to leave the company.
It is to be noted that the High Court, Jharkhand, while accepting the arguments of Advocate Akhilesh Srivastava in the appeal, not only restored Nand Kumar Singh to the post of Director but also said that Nand Kumar Singh’s share is 79% and he cannot be thrown out of the company and declared the forgery committed by the brothers of Nand Kumar Singh as illegal.
The Supreme Court, during the debate, told advocate Akhilesh Srivastava that it does not agree with the order of the High Court that Nand Kumar Singh cannot be thrown out of the company, but we know that all the investments in the company have been done by Nand Kumar Singh.