2006 (8) TMI 314

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....R. Gururajan, J. - M/s. Electrex (India) Ltd. is before us aggrieved by the common order dated 28-11-2002, passed in C.P. No. EIL. 11/58-AC/CLB/SRB/2002 on the file Company Law Board, Southern Region Bench, Chennai. 2. The appellant is a company and the respondents are depositors of the appellant-company having made 1-3 year deposits with the appellant-company during the year 2000, aggregating ....

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....ons under section 58A(9) of the Companies Act before the BIFR for a direction to the appellant to repay the deposits. According to appeal averments, it was the case of the appellant that section 22 of the Act is attracted and that the proceedings under section 58A(9) are to be stayed in the matter. The Company Law Board, in terms of the impugned order dated July 31, 2000, directed the appellant to....

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....he observations made by the BIFR, as could be seen at pages 24 and 25 of the paper book of this appeal, that the company would repay deposits with interest in favour of 75 depositors in accordance with the scheme which may be sanctioned by the BIFR. The Company Law Board has noticed that the very Bench passed an order in the matter of repayment of deposits. An appeal was filed before the High Cour....

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....of India [2001] 104 Comp. Cas. 401 ^1 (Ker.). In the said judgment this Court has ruled as under : "A deposit by the depositors is not a sum lent to the company but is a sum deposited with the company to be held in trust by the company till the time of maturity. It is not a loan in the strict sense of the term. Therefore, any claim made for return of a deposit made with the company cannot be te....