Company Law Board orders repayment of Rs. 30 crores to depositors; company faces dismissal for non-compliance.

The Company Law Board ordered a petitioner company to repay Rs. 30 crores to depositors in installments by specific dates. Despite warnings and multiple adjournments, the company failed to comply with the repayment orders. The Bench dismissed the petition due to the company's inability to repay, allowing depositors to pursue legal remedies. The Registrar of Companies was advised to take action against the company under Section 74(3) of the Companies Act, 2013, and the related committees were dissolved.

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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 Rs. 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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