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2016 (7) TMI 765 - Board - Companies LawDefault in making repayment to the depositors as per undertaking given by the Managing Director of the company - Held that - When the petitioner company could not repay ₹ 30 crores of money in the time given by this Bench as asked by the company on 11-3-2016, it could not be possible for the company to clear ₹ 550 crores dues payable to the depositors in near future. Seeing the developments so far taken place in this case, this Bench is of the opinion that this company would not be in a position to repay the depositors even it further time is extended; therefore this Bench, for having the company defaulted complying with the order dated 11-3-2016, dismissed the petition leaving it open to the depositors to pursue their remedies as per law. Accordingly, this Bench hereby suggests RoC concerned to take appropriate action against the company u/s. 74(3) of the Companies Act, 2013.
Issues: Non-repayment of depositors' funds, Company's failure to comply with repayment orders, Dismissal of petition, Appointment of sale committee
In this judgment by the Company Law Board, the petitioner company was ordered to repay ?30 crores to depositors in three equal installments by specific dates. Despite the orders, the company failed to make any payments as directed by the Bench. The Managing Director initially undertook to repay the amount in six months, but later revised the repayment schedule to three equal installments, which the company still did not honor. The Bench warned that any default in repayment would result in the dismissal of the petition. The Bench had given multiple adjournments and even appointed a sale committee to sell company properties for funds, but no progress was made. Due to the company's inability to repay, the Bench dismissed the petition, allowing depositors to seek legal remedies. The Registrar of Companies was advised to take action against the company under Section 74(3) of the Companies Act, 2013. The applications filed by the company were closed, and the Hardship Committee and Sale Committee were dissolved.
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