Investor protection under Section 117C(4) applies to pre-amendment debentures pending redemption, enabling repayment directions.

Section 117C(4) of the Companies Act, 1956 was read as a beneficial investor-protection provision that applies to debentures issued before the 2000 amendment if they were still outstanding and pending redemption when the provision commenced. The language was treated as plain and unqualified, so it was not confined to post-13-12-2000 issuances. On that construction, the Company Law Board has jurisdiction to direct repayment on default at maturity, consistent with the provision's purpose and its analogy to other investor-protection remedies for matured but unpaid obligations.

---

---

Issues: Whether Section 117C(4) of the Companies Act, 1956 applies to debentures issued before the commencement of the Companies (Amendment) Act, 2000 and pending redemption, so as to confer jurisdiction on the Company Law Board to direct repayment.

Analysis: Section 117C was inserted to protect debenture-holders by requiring creation of a debenture redemption reserve and by enabling the Company Law Board to act on default in repayment on maturity. The language of sub-section (4) was held to be plain and unambiguous and not limited to debentures issued only after 13-12-2000. The provision was treated as applicable to debentures outstanding and pending redemption on the date of its insertion, and the departmental clarification was read as supporting that construction. The provision was also treated as analogous to Section 58A(9) of the Companies Act, 1956 and Section 45QA(2) of the Reserve Bank of India Act, 1934, both of which operate to protect investors in matured but unpaid obligations.

Conclusion: Section 117C(4) applies to pre-amendment debentures pending redemption, and the Company Law Board has jurisdiction to direct their repayment.

Final Conclusion: The applications were maintainable and the companies were required to redeem the unpaid debentures with principal and interest within the time directed.

Ratio Decidendi: A beneficial provision conferring investor protection and remedying default in repayment is to be applied to debentures pending redemption at the time of its commencement where the statutory language is clear and no express restriction to future issuances is found.

---