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TMI Blog2015 (5) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... the existing deposits as and when deposits are matured after 31-3-2015. If such a relief is granted, it will become nothing but negating the intention of the legislation in Sec 74(1) of the Act, 2013. It might not be the intention of the legislation in providing discretion to the Company Law Board to grant time to the company to repay the deposits as when they are matured, perhaps it has been legislated to extend time enabling the company to pay it sooner than later. Despite the company has stopped receiving any deposits since 31.3.2014, it appears the company has been making bona fide efforts in making repayments to the depositors. The company has sanction letter on hand from the Bank for release of loan for an amount of about ₹ 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his application u/s 74(2) of the Companies Act, 2013(herein after referred as Act), primarily seeking exemption from the requirement of maintaining liquid assets under Rule 3A of the Companies (Acceptance of Deposits) Rule, 1975/Rule 13 of the Companies (Acceptance of Deposits) Rules, 2014; permission to utilise the funds kept aside for repayment of outstanding Deposits; permission to repay the existing deposits in accordance with the original terms and tenure as accepted by such Deposit Holders, instead of repaying all outstanding deposits by 31.3.2015, and time of two months since 31.5.2015 to clear all the deposits fell due for repayment on or before 31.3.2015 as per their original terms of acceptance. 2. The applicant submits that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 52 Crores. It has cleared the demand of premature payments from April, 2015 to March, 2017 by paying ₹ 58.35 Crores. The company further says it has to clear the demand of ₹ 59.57 Crores towards premature deposits. 3. The company further submits, it is difficult for the company to take out such a large amount from running business for repayment of all matured and premature deposits by 31.3.2015, this difficulty was brought to the notice of Ministry of Corporate Affairs vide letter dated 22.4.2014. Responding to the same, the Ministry of Corporate Affairs notified conferring powers on Company Law Board to take up applications u/s 74(2) of the Companies Act, 2013, in pursuance thereof, the company filed the present application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any has not yet received sale proceeds. Apart from this, the company has tied up with its Banker to raise fresh loan to repay part of its outstanding deposits. The company has also kept aside ₹ 160/- Crores in the form of Fixed Deposits with Banks towards liquid assets, as per a requirement of Rule 3A of the Companies (Acceptance of Deposits) Rules, 1975 to be utilised for repayment of the outstanding Deposits. 7. The counsel appearing on behalf of the Applicant says, though Bank sanctioned loan in the month of June, 2014 (Annexure III), it has not yet been released because file has to circulate through various banks in the consortium. He says the company will clear most of it, once the sanctioned limit is released from the Bank. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission to repay the existing deposits in accordance with the original terms, it appears it is not possible to grant permission to the company to repay the existing deposits as and when deposits are matured after 31-3-2015. If such a relief is granted, it will become nothing but negating the intention of the legislation in Sec 74(1) of the Act, 2013. It might not be the intention of the legislation in providing discretion to the Company Law Board to grant time to the company to repay the deposits as when they are matured, perhaps it has been legislated to extend time enabling the company to pay it sooner than later. 11. Despite the company has stopped receiving any deposits since 31.3.2014, it appears the company has been making bona fide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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