COUNCIL OF INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA Vs. R.K. TAYAL
LAWS(DLH)-2007-7-322
HIGH COURT OF DELHI
Decided on July 23,2007

COUNCIL OF INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA Appellant
VERSUS
R.K. Tayal Respondents

JUDGEMENT

V.B.GUPTA, J. - (1.) PRESENT reference has been made to this Court under s. 21(5) of the chartered accountants Act, 1949 read with Chapter 7F of the Delhi High Court Rules. behalf of the respondent No. 1, R.K. Tayal and arguments were heard.
(2.) AS per statement of the case, Sh. Thampy Mathews, DGM, Industrial Investment Bank of India, New Delhi filed a complaint against respondent No. 1. The complainant -bank had sanctioned a term loan of Rs. 630 lakhs to Haryana Steel & Alloys Ltd., Sonipat, Haryana ('the Company') for its expansion -cum -modernisation project. As per terms and conditions of sanction, the company was to bring in 100 per cent of the promoters' contribution (Rs. 270 lakhs) by way of internal accruals and actually bring in at least 50 per cent of the same. While requesting for disbursement of the sanctioned amount, the company stated that it had already spent Rs. 147.21 lakhs for the project till that time and in support thereof, the company submitted a certificate dt. 10 -2 -1998 issued by the respondent No. 1 stating that the company has already spent Rs. 147.21 lakhs for the project till that time including an amount of Rs. 6.61 lakhs paid to the complainant bank.
(3.) BASED on the aforesaid certificate of respondent No. 1, the complainant -bank disbursed an amount of Rs. 315 lakhs in two instalments to the company being 50 per cent of the sanctioned amount and advised it to submit a utilisation that the funds were utilised by the company out of the loan of Rs. 315 lakhs received from the complainant -bank. In the said certificate, a sum of Rs. 6.61 lakhs has also been shown as amount paid to the complainant -bank for upfront fee, while the said amount was received from the funds inducted by the promoters before disbursement of the said loan. It has been further alleged in the complaint that sum of Rs. 12,55,117 and also Rs. 7,25,348 had been paid to the Against the aforesaid background, the allegations made against the respondent No. 1 as per complaint, are as under : (ii) The said certificates did not reflect the end use of the funds." ;


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