Judgment 1. It appears that the State government of Bihar has not taken the nature of these proceedings seriously.A truncated information has been supplied to the High court. In a suit either party may serve interrogatories or seek discovery and the party on whom such an application lies is obliged to bring forth information upon an order of even a lowest court of the land. 2. The information which was sought by the High Court is public information. The running of State government corporations and/or companies is a public affair arising out of public funds. An audit is also a public audit. The High Court, notwithstanding as it comes into the picture when a case is before it, this information has to be supplied, timely, as prescribed by law to the Registrar of Companies. There is a recurprovisions of the Companies Act, 1956 . it is a provision of the law that only individuals will be directors of the companies and it gives an impression to the Court as if the government companies are being run as a corporate affair within the government itself. 3. The information which was sought is a statutory information. Giving a report to the High Court with the remarks "not applicable" is like taking a posture of withholding information. 4. The State government should atleast have some consciousness that by an order of the Supreme Court it has been required to deposit a sum of Rs. 50 crores at the Patna High Court. Not only this, the State respondents can hardly pretend that they were unaware of the problem. In the year 2000 by an order dated 20.7.2000 in re Bihar State Industrial Development Ltd. V/s. Dharmaraj Kumar Pandey & ors: 2000 (4) P.L.J.R. 795 a Division of the Patna High Court had already brought to the notice of the State government that there are issues involving non-payment of dues to the employees of the government companies. 5. In terms of the order of the Supreme Court a committee is about to look into these matters about retirai benefits and pensions not paid to superannuated employees of government companies and such other matters indicated to the Supreme Court. 6. Withholding information from a statutory authority is a violation of the law for which penal provisions have been provided by the Act. Withholding information when the Court seeks it may be contempt. 7. 6. Withholding information from a statutory authority is a violation of the law for which penal provisions have been provided by the Act. Withholding information when the Court seeks it may be contempt. 7. Thus, since this is a serious matter it definitely is connected with the fiscal affairs of government companies incorporated out of public funds; peoples money. On the affairs of these companies, it is a public affair for public information. The person who has sworn the affidavit on the report which has been filed before the Court and the Chief Secretary be present in Court after lunch. 8. A copy of the report which has been filed in Court on 11 July, 2003 has not been served on the Registrar of Companies. If the report is split up companywise, in any case, this is a statutory information which the authorities are obliged to provide to the Registrar of Companies. LaterOrder (No. 18) dated 4.8.2003 9. These matters relating to Government companies, all virtually coming to grinding halt, not being able to pay their debts on loans which they have taken from other public finance institutions and further not being able to pay their staff salaries, retirement benefits and pensions has gone out of proportion. If it were one company then the law takes care of the situation and provides remedies in the matter of that company. But, in Bihar government companies not being able to pay their debts and salaries to their staff is an endemic disease. If the factors which are enumerated in section 433 of the Companies Act, 1956 , happen in relation to any company then the necessary corollary is that the Company ought to be wound up by an order of the Court. But, in Bihar, there are almost 30 companies whose functioning has come to a stand-still halt and their running does not inspire confidence. But it is settled law in corporate matters that the Company Judge, whose original jurisdiction these matters are does not for the askance wind up a company. The initial efforts are to save a company as other persons equity is invested in it. As way back as 26 September, 2002 this Court has been seeking information on companies which may be termed as sick or may be headless without a Chairman or Board of Directors and may not have furnished statutory information to the Registrar of Companies. The initial efforts are to save a company as other persons equity is invested in it. As way back as 26 September, 2002 this Court has been seeking information on companies which may be termed as sick or may be headless without a Chairman or Board of Directors and may not have furnished statutory information to the Registrar of Companies. For instance information on holding annual general meetings, annual returns, placement of Directors in accordance with the Articles of Association, change of Directors, change of their registered office-this information is being evaded from the Court despite being sought. While a retired employee may not be receiving their retiral benefit or pension is one aspect of the matter which has drawn nationwide attention, but the state government companies borrowing from public finance institutions and not paying their debt reflects badly not only on such government companies but on the state of economy and the financial affairs within the State of Bihar. 10. In the previous orders of the Court, the Court has been critical of the Registrar of the Companies, also, that year by year he did not put these companies under notice that the statutory information had not been filed. In so far as the Act, is concerned each years default has to be explained. The defaulting company and its directors may see visitation with penal consequences whether fine or imprisonment as the law prescribes. There is some misunderstanding that there is a corporate explanation which may be explained away by the company. This is not so. Section 253 of the Companies Act makes it very clear that the responsibility is individual. While bureaucrats may enjoy their perks out of government companies the explanation and the responsibility is individual. This is the law. 11. Of the information desired by the Court the manner it has been supplied is shabby. But even with this shabby information what is placed before the Court is absolutely scandalous. Some companies do not have a Chairman, some do not have a Board of Directors and yet some neither a Chairman nor a Board of Directors. The question arises how these companies function? Since when? Who runs them? These are matters of finances. Public finance. No information is secret. If the information was secret then the government companies were at liberty to claim secrecy. But, from whom? The Registrar of Companies? 12. The question arises how these companies function? Since when? Who runs them? These are matters of finances. Public finance. No information is secret. If the information was secret then the government companies were at liberty to claim secrecy. But, from whom? The Registrar of Companies? 12. But once the Court seeks public information, not to give it or give truncated information is interference with the course of justice. This is withholding essential information which is germane to the issues which affects the life of poor people who have made investment in the government companies by their service. A large number of them are getting their retiral dues or pension. Of loans not paid by the government companies to the public finance institutions, these government companies and the State of Bihar is contributing to the deficit financing of a planned economy of whatever is left. The default is within the Government. 13. For withholding information this Court puts Gurminder Singh Kang son of L.S. Lal Singh Kang, resident of M-11, Strand Road, P.S. Secretariat, District Patna, Chairman, Bureau of Public Enterprises, Government of Bihar, Patna to show cause why the Court ought not to take out proceedings in contempt. He has interfered with the due course of judicial proceedings and obstructed the administration of justice. Notice be sent to this person by the Registrar General to be effected upon him through J.C. to A.A.G. 2. 14. The Court is not satisfied with the report which has been filed by the Registrar of Companies. These defaults of avoiding statutory information as prescribed under the Act which has to be filed before the Registrar of Companies cannot be termed as one handed affair. It is correct that the obligation was on the Board of Directors or the others within the government companies to have filed this information voluntarily. For not having done so those incharge of these government companies will have to give an answer to the law. But after information of an incorporated company was given to the Registrar of the Companies, in the first year of the default, a notice should have gone to the companies that the statutory returns and information under the Act has not been filed. The obligation to give information to the Registrar of Companies is one aspect of the matter. But after information of an incorporated company was given to the Registrar of the Companies, in the first year of the default, a notice should have gone to the companies that the statutory returns and information under the Act has not been filed. The obligation to give information to the Registrar of Companies is one aspect of the matter. When a recurring default was occurring and the Registrar of Companies was conscious of it he should have put the defaulting party under notice. At present we leave this aspect for later. 15. Of the nature of default, there is no issue that it is all about finances. The only government agency or the authority which arranges the audit of the accounts of government companies is the Comptroller and Auditor General of India (Section 619). Thus, auditor of these government companies may be appointed by the Comptroller and Auditor General of India. These government companies are referred to in the report of the Registrar of Companies. 16. Put up on Wednesday in the supplementary list.