2015 (9) TMI 861

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....dhu, Adv., Ms. Anil Katiyar, Adv., Mr. B. V. Balaram Das, Adv. For the Respondent : Mr. Pratap Venugopal, Adv., Ms. Surekha Raman, Adv., Mr. Gaurav Nair, Adv., Ms. Niharika, Adv., M/s. K. J. John & Co. ORDER The respondent-assessee opened a public issue of shares on 29.01.1992. The date of closure of this issue was 03.02.1992. Proceeds which were received from the applicants to the share ....

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.... the Companies Act, the assessee was required to keep the money in Bank account, interest has accrued to the assessee only on the allotment of the shares as before that the amount was kept in trust by the assessee which belonged to the applicants who wanted to subscribe for the shares. It was further submitted that after certain amount was refunded, which included interest to those whose applicati....

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....d to those to whom shares are not allotted. No part of this fund, either principal or interest accrued thereon, can be utilized by the company until the allotment process is completed and money repayable to those entitled to repayment has been repaid in full together with such interest as may be prescribed having regard to the length of period of delay in the return of money to them. 18. It is ....

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....f that separate bank account and cannot be transferred to any other account. 19. As the amount of interest earned on the application money to the extent to which it is not required for being paid to the applicants to whom moneys have become refundable by reason of delay in making the refund will belong to the company, only when the trust terminates and it is only at that point of time, it can b....