https://www.taxtmi.com/caselaws?id=101328 Fixed deposits placed by a company with other companies were not "loans" for purposes of section 370 of the Companies Act, 1956. The statutory scheme treated loans and deposits as distinct concepts, with deposits separately recognised in the Act and not interchangeable with loans. A deposit is ordinarily made at the giver's instance for the depositor's benefit, whereas a loan is advanced at the borrower's instance for the borrower's needs. Because section 371 imposed penal consequences, the term "loan" could not be extended beyond its ordinary meaning absent clear legislative language equating deposits with loans. No contravention was made out. en-us Tue, 11 Feb 1986 00:00:00 +0530 Thu, 09 Feb 2012 13:38:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101328 Fixed deposits placed by a company with other companies were not "loans" for purposes of section 370 of the Companies Act, 1956. The statutory scheme treated loans and deposits as distinct concepts, with deposits separately recognised in the Act and not interchangeable with loans. A deposit is ordinarily made at the giver's instance for the depositor's benefit, whereas a loan is advanced at the borrower's instance for the borrower's needs. Because section 371 imposed penal consequences, the term "loan" could not be extended beyond its ordinary meaning absent clear legislative language equating deposits with loans. No contravention was made out. Case-Laws Companies Law Tue, 11 Feb 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101328