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SUPREME COURT OF INDIA

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CASE NO.:

Appeal (crl.) 664 of 2002

PETITIONER:

S.M.S. Pharmaceuticals Ltd

RESPONDENT:

Neeta Bhalla & Anr

DATE OF JUDGMENT: 20/02/2007

BENCH:

S.B. Sinha & Markandey Katju

JUDGMENT:

J U D G M E N T

S.B. Sinha, J.

Appellant herein is a company registered and incorporated under the

Companies Act. Respondent No. 1 was a Director of a company known as

M/s. Direct Finance and Investment Ltd., New Delhi. She allegedly

submitted her resignation on 15.04.1994.

Against the said company, the Managing Director thereof, Respondent

No. 1 herein as also another director, a complaint petition was filed by the

appellant alleging that the Company represented by its Managing Director

had called for inter-corporate deposit for a short period of 15 days to the

extent of rupees two crores and to such a proposal it agreed. The rate of

interest for such deposit was stipulated at 25% per annum therefor payable

within 15 days. A promissory note was executed by the accused No. 2 on

behalf of the Company. The date of maturity of the said deposit was fixed

on 15.03.1995. Upon expiry of the period of deposit, the accuse