In the company xyz with Authorized capital of 12lakhs and paid up capital of 9.5 lakhs Person A was holding 6 lakhs shares and Person B & Person C(Managing Dirctor and Wife) was holding 3.5 lakhs shares. Later in 2004 the authorized capital was raised to 60 lakhs. Person A paid an amount of 7 lakhs as part of his share applciation money via accountpayee cheque. B and C also brought in around 2 lakhs by cash.The total amount of 7lakhs was reflected in Balance Sheet under share application money . Shares were not issued initially. Later in 2010 when assets of the company grew B & C husband and wife issued shares to themself (two allotments made in 2010 bothbackdated to 2008) and took control of the company and filed backdated returns before ROC. This was challenged before CLB. Now the transactions that came into the bank account and also some cash transactions made by them into the bank account is claimed as share application money. To counter the share application money of 7 lakhs paid another transaction form a diffrent entity(another company) that came to the account of the company is claimed as share application money of MD (PERSON B) and fabricated records are made to show that the said amount 7 lakhs paid by A was flat advance (there was an amount of 58 lakhs in flat advance) paid by Some person T and the same was returned to him by cash cheque. My queries are this can another person or entities payment be claimed as ones share application money. Is there legal provisions in Company Law regarding the same. Kindly Advice
