Judgment

JAGANNADHADAS, J.: These two applications are for relief under Article 32 of the Constitution arising out of similar and connected set of facts and are dealt with together. They arise under the following circumstances. The Registrar of the Joint Stock Companies, Delhi State, lodged information with the Inspector-General Delhi Special Police Establishment to the following effect. Messrs. Dalmia Jain Airways Ltd. was registered in his office on 9-7-1946, with an authorised capital of Rs. 10 crores and went into liquidation on 13-6-1952.

An investigation into the affairs of the Company was ordered by the Government and the report of the inspector appointed under S. 138, Companies Act indicated that an organised attempt was made from the inception of the Company to misappropriate and embezzle the funds of the Company and declare it to be substantial loss, and to conceal from the share-holders the true state of affairs by submitting false accounts and balance-sheets. Various dishonest and fraudulent transactions were also disclosed which show that false accounts with fictitious entries and false records were being maintained and that dishonest transfers of moneys had been made. I