9911796707
TMI Blog2006 (8) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... mmon order dated 28-11-2002, passed in C.P. No. EIL. 11/58-AC/CLB/SRB/2002 on the file Company Law Board, Southern Region Bench, Chennai. 2. The appellant is a company and the respondents are depositors of the appellant-company having made 1-3 year deposits with the appellant-company during the year 2000, aggregating Rs. 8.88 lakhs. The said deposits were received by the appellant-company as b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellant to repay the deposits. According to appeal averments, it was the case of the appellant that section 22 of the Act is attracted and that the proceedings under section 58A(9) are to be stayed in the matter. The Company Law Board, in terms of the impugned order dated July 31, 2000, directed the appellant to repay the deposits of 202 depositors. The appellant is before us aggrieved b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e paper book of this appeal, that the company would repay deposits with interest in favour of 75 depositors in accordance with the scheme which may be sanctioned by the BIFR. The Company Law Board has noticed that the very Bench passed an order in the matter of repayment of deposits. An appeal was filed before the High Court in M.F.A. No. 3743 of 2000. The Company Law Board notices an order of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Court has ruled as under : "A deposit by the depositors is not a sum lent to the company but is a sum deposited with the company to be held in trust by the company till the time of maturity. It is not a loan in the strict sense of the term. Therefore, any claim made for return of a deposit made with the company cannot be termed as a suit for recovery of money due. Section 22(1) prohibiting as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Apex Court in the decision, supra , it is a sum kept with the company by the depositors in trust for return after maturity. The learned Single Judge has on proper and detailed appreciation of the matter has come to the correct conclusion. The reasons assigned by the learned Single Judge for arriving at the said conclusion are well-founded and do not call for any interference." (p. 403) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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