Company Registration in Tirupur
Repayment of Deposit [Section 73(3) of Companies Act, 2013]
Section 73(3) of the 2013 Act is similar to section 58A(3A) of the 1956 Act except that under the 1956 Act it was permissible to either repay the deposit or renew the deposit while the 2013 Act requires repayment of the deposit to be effected. There is no provision of renewal of deposit and every deposit accepted shall be refunded with interest in accordance with the terms and conditions of deposits. Rule 3(1), 3(3), 3(4), 3(5) and 3(6) of the Companies (Acceptance of Deposits) Rules, 2014 refer to both terms "accept and renew" and hence the intention of the statute appears to be to permit renewal although s. 73(3) of the 2013 Act does not refer to renewal.
Remedy available to the depositor [Section 73(4) of Companies Act, 2013]
Section 73(4) of the 2013 Act is a modification of s. 58A (9) of the 1956 Act. Section 58 A (9) of the 1956 Act contained a provision for suo moto cognizance by the Company Law Board (although s. 58A(9) of the 1956 Act was amended to empower the Tribunal, this amendment was not made effective) while under section 73(4) of the 2013 Act, the Tribunal has authority to pass an order only if an application is made by a depositor. If there is a default in repayment of deposit or part of the deposit or interest on deposits, the depositor may approach the Tribunal for relief. The powers of the Tribunal have been enlarged under the 2013 Act and now in addition to passing an order directing repayment of the amount and such other orders as it may deem fit, the Tribunal may also order the company to pay any sum towards any loss or damage incurred by the depositor due to such non-payment. As per Notification No. SO 1428(E) dated 02-06-2014 issued under section 470(1) of the 2013 Act, the CLB constituted under s. 10E of the 1956 Act shall exercise jurisdiction under section 73(4) of the 2013 Act. The Tribunal has been vested with the following powers under section 73(4) of the 2013 Act:
a) Order the company to pay the sum due;
b) Order the company to pay for any loss or damage incurred by the depositor;
c) Pass any other order as the Tribunal may deem fit.
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