( 1 ) THE LML Limited is a company engaged in manufacturing of scooters. A proposal for conversion of the company into a joint venture of the Indian Promoters and Piaggio was prepared and placed before the financial institutions and banks and more particularly to the Industrial Finance Corporation of India. LML Fibres and Prakati Synthetics Limited (PSL) were the subsidiary companies of LML Limited. LML Limited - the plaintiff No. 1 also had a fibre division besides the main business of manufacturing of scooters. The proposal of the plaintiff No. 1 company for conversion of the company into a joint venture was approved by the Industrial Finance Corporation of India by its letter dated 13th August, 1990 on the terms and conditions contained in the said letter. It appears at the relevant time and for sometimes even thereafter defendant No. 4 continued to be a Director of the plaintiff No. 1. The institutions and banks also conveyed approval to the proposal for transfer/sale of L. M. L. Fibres Limited to Shri Sitaram Singhania, defendant No. 4 and/or his nominee and transfer of ownership in Prakati Synthetics Limited in favour of L. M. L. Fibres Limited on the follow