Management of Day to Day Affairs of Uphaar Cinema

1. Right from  the  beginning i.e. since  the year  1973 Mr. K.L. Malhotra was employed as Manager of Uphaar Cinema and later  on he  was promoted as Dy. General Manager of  the Company. Mr. R.M. Puri  was  working as  General Manager of Uphaar Cinema in the  beginning and later  on in  the year 1988 he  was appointed as Whole Time Director of  the  aforesaid  Company which is  the  Owner  of Uphaar Cinema.   Under the  Articles of Association of the  Company the  Whole Time Director is responsible for day  to day  affairs of the Company.
2. On the  date of incident i.e.  13.6.1997 Mr.  R.M. Puri was the  Whole Time Director  and  Mr. K.L. Malhotra was  the  Dy. General Manager.
3. There is voluminous record of  correspondence and  otherwise which  establishes that  the  entire correspondence with different authorities was  mostly being done  by  Mr. K.L. Malhotra and the remaining important correspondence was  being  done  by  Mr. R.M. Puri.  Besides correspondence, all  day  to day income and expenditure of  the  Cinema was being controlled by Mr. K.L. Malhotra and     Mr. R.M. Puri.   They were also  looking after the  day  to  day operation of the cinema business.
4. There is no evidence  to  indicate that  Mr. Sushil Ansal or Mr. Gopal Ansal were at all involved in day  to day control, management  and  affairs  of  the  conduct of business  of Uphaar Cinema.
5. In the beginning Mr.  Sushil Ansal and Mr. Gopal Ansal were on the board  of  Directors of the Company but on  17.10.1988  they  resigned from the Directorship  of the  Company and  since  then they  are not  at all linked with the    cinema business.   It  was only Mr.K.L. Malhotra who was running  the  cinema business  under the  Directorship of Mr. R.M. Puri and  with the  assistance of his  other  Subordinate Managerial Staff.
6. On  the  date  of  incident there  were  three  Directors in the Company namely  Mr. R.M. Puri, Mr. P.P. Dharwadkar and  Mr. Subhash Verma. A specific resolution was also passed by the Company fixing entire responsibility of day to day management and control on Mr. R.M. Puri. Even under the Articles of Association of the Company, it was Whole Time Director who was incharge and responsible for the day-to-day conduct of the business and management of the company.