Repayment and Acceptance of Deposits-Overview
(1) Where in
respect of any deposit accepted by a company before the commencement of this
Act, the amount of such deposit or part thereof or any interest due thereon
remains unpaid on such commencement or becomes due at any time thereafter, the
company shall—
(a)
file, within a period of three months from such commencement or from the date
on which such payments, are due, with the Registrar a statement of
all the deposits accepted by the company and sums remaining unpaid on such
amount with the interest payable thereon along with the arrangements made for
such repayment, notwithstanding anything contained in any other law for the
time being in force or under the terms and conditions subject to which the
deposit was accepted or any scheme framed under any law; and
(b) repay
within three years from such commencement or on or before expiry of the period
for which the deposits were accepted, whichever
is earlier:
Provided
that renewal of any such deposits shall be done in accordance with the
provisions of Chapter V and the rules made thereunder.]
*(2) The Tribunal may
on an application made by the company, after considering the financial
condition of the company, the amount of deposit or part thereof and the
interest payable thereon and such other matters, allow further time as
considered reasonable to the company to repay the deposit.
*(3) If a company fails to repay the deposit or
part thereof or any interest thereon within the time specified in sub-section
(1) or such further time as may be allowed by the Tribunal under sub-section
(2), the company shall, in addition to the payment of the amount of deposit or
part thereof and the interest due, be punishable with fine which shall not be less
than one crore rupees but which may extend to ten crore rupees and every
officer of the company who is in default shall be punishable with imprisonment
which may extend to seven years or with fine which shall not be less than
twenty-five lakh rupees but which may extend to two crore rupees, or with both
Damages for Fraud
75. (1) Where a company fails to repay the
deposit or part thereof or any interest thereon referred to in section 74
within the time specified in sub-section (1) of that section or such further
time as may be allowed by the Tribunal under sub-section (2) of that section,
and it is proved that the deposits had been accepted with intent to defraud the
depositors or for any fraudulent purpose, every officer of the company who was
responsible for the acceptance of such deposit shall, without prejudice to the
provisions contained in sub-section (3) of that section and liability under
section 447, be personally responsible, without any limitation of liability,
for all or any of the losses or damages that may have been incurred by the
depositors.
(2) Any suit, proceedings or other action may
be taken by any person, group of persons or any association of persons who had
incurred any loss as a result of the failure of the company to repay the deposits
or part thereof or any interest thereon.
DISCLAIMER: THE
ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING
AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT
AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING
INITIATIVE.
THE AUTHOR
– CS DEEPAK SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS LLP) AND
CAN BE REACHED AT CONTACTHHPRO@GMAIL.COM OR 9910248911.
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