TaxTMI 
TaxTMI 
2018 (1) TMI 1178
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....,41,64,653 equity shares of Rs. 2/- each and 14,20,000 cumulative redeemable preference shares of Rs. 100/- each fully paid- up. However, the figure reflected in the previous year as per this Balance Sheet is 5,03,46,941 equity shares of Rs. 2/- each and 14,20,000 redeemable preference share shares of Rs. 100/- each fully paid-up. 2. The petitioner company earlier filed a petition before the Company Law Board, New Delhi bearing CP No.27/2/2013 under Section 58AA of the Companies Act, 1956 (for brevity '1956 Act') read with Rule 44 of the Company Law Board Regulations 1991 with a prayer to allow the scheme for repayment of its deposits as per the Schedule of Repayment and exempt the applicant company from the requirement of maintaining liquid assets under Rule 3 (A) of the Companies (Acceptance of Deposits) Rules, 1975 till the validity of the scheme. It was stated that it was a case of small depositors. 3. The grounds taken in the said application was that the petitioner company has been accepting deposits from the public since the year 2002 and regularly and punctually paid back the fixed deposits upto 28.02.2013. In the financial year ending 31.03.2013, the applicant compan....
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....holders having fixed deposits upto Rs. 15,000/- shall be paid within one year from the date of maturity of deposits. (iv) In regard to the fixed deposits ranging from Rs. 15,001/- to Rs. 25,000/- payment shall be made within four years from the date of maturity of deposits, at 25% in the first year, 25% in the second year, 25% in the third year and balance 25% in the fourth year. The interest for both pre and post maturity period will be paid along with the last instalment. (v) All the fixed deposits of Rs. 25,001/- to Rs. 50,000/- shall be paid within four and half years from the date of maturity of deposits at 20% in the first year, 20% in the second year, 25% in the third year, 25% in the fourth year and the remaining 10% in the next six months of the fifth year. The interest for both pre and post maturity period will be paid along with the last instalment. (vi) With regard to deposits of 50,001/- to Rs. 1,00,000/-, the payment shall be made within five years from the date of maturity of deposits at 15% in the first year, 15% in the second year, 20% in the third year, 30% in the fourth year and the remaining 20% in the first year. The interest for both....
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....ate Debt Restructuring (CDR), but the same is not yielding desired results. The old debtors of the company have not serviced their payments and it is trying hard to recover the dues. Now the applicant company in this application made the prayers for further extension of time by re-scheduling the payments. By the said proposal, the company sought extension for making payment in respect of the deposit holders from Rs. 10,000/- to Rs. 50,000/- for another 2 years and for 3 years in respect of the payment of the deposit holders from Rs. 50,001/- and above in addition to the relief granted by the Company Law Board. Fixed deposit holders upto Rs. 10,000/- are promised to be paid within one year from the date of order apart from certain other detailed terms and conditions. 11. When the matter was listed on 11.11.2016, notice of the application was directed to be issued to the Registrar of Companies, Chandigarh and Regional Director, Ministry of Corporate Affairs, New Delhi. It was further directed to publish the notice of the hearing by advertisement in two newspapers viz; 'Times of India' and 'Dainik Bhaskar' having wide circulation. The company was to publish the list of depositors w....
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....ns was Rs. 1,72,000/-. 17. The other objectors, who filed separate objections are S.Santosh, S.Mahesh, S.Suresh and Subramanian Chandershekhar. Names of other objectors represented by the same Advocate Mr.Yowan Sharma are Nishi Khanna, Amal Khanna, Sanjeev Khanna, Manpreet Singh. All these objectors have opposed the further extension of time. Subramanian Chanderashekhar stated that out of the fixed deposit of Rs. 3 lacs, the balance as on date was 1,99,500/- with interest. It is stated that in terms of the order passed by the Company Law Board, the company made the payment of 10% of the amount in December, 2015, but failed to pay rest of the amount. 18. The other objections/reply to the instant application have been filed by the depositors namely; Sunanda Khanna, Renu Goel, Anil Kumar, S. Mahesh and others and few of the objectors represented by Mr. Ashok Sachdeva the authorised representative of the objections/objectors are by H.K.Mariyappa, Tej Mariyappa, Suman Mariyappa, Darshan Mariyappa and Anila Sud. The written submissions have been filed by Mr.Yash Pal Gupta, Advocate, Mr.Ajay Chhikara, Advocate and Mr.Gopal Sharma, Advocate and Mr.Sachdeva for the objectors. 19. I....
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....ries limited also got the fixed deposit scheme restructured in the same terms and conditions as ordered by the Company Law Board, vide order dated 30.09.2013 and that company was paying the fixed deposits as per the schedule permitted. The outstanding payment for the fixed depositors in May, 2013 at the time of filing of the company petition before the Company Law Board was Rs. 106.28 crores out of which the said company had paid Rs. 69.48 crores and the outstanding amount as on 31.08.2017 remained Rs. 36.80 crores. 23. The financial position of the aforesaid company in terms of the turnover and net profit/loss has been given. That company suffered losses of Rs. 118.97 crores in the financial year 2012-13 which has come down to Rs. 39.75 crores in the financial year 2016-17. 24. It was further stated that another group company, M/s Essix Biosciences limited had also got its fixed deposit scheme restructured on the same terms and conditions from the Company Law Board vide order dated 30.09.2013 and is paying the fixed deposits as per the said order. There was an outstanding amount of Rs. 16.93 crores relating to the fixed deposit holders in May, 2013 and the balance amount as ....
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....described while narrating the facts of the case. 29. To deal with this question, it would be necessary to refer to the provisions of Section 74 of the Companies Act 2013, under which this application has been filed. It reads as under: "74. Repayment of deposits, etc., accepted before commencement of this Act. (1) Where in respect of any deposit accepted by a company before commencement of this Act, the amount of such deposit or part thereof or any interest due thereon remains unpaid on such commencement or becomes due at any time thereafter, the company shall- (a) file, within a period of three months from such commencement or from the date on which such payments, are due, with the Registrar a statement of all the deposits accepted by the company and sums remaining unpaid on such amount with the interest payable thereon along with the arrangements made for such repayment, notwithstanding anything contained in any other law for the time being in force or under the terms and conditions subject to which the deposit was accepted or any scheme framed under any law; and (b) repay within one year from such commencement or from the date on....
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....e time for so many years in the year 2013, there is no question of giving indulgence to the request for another extension. The legislature has laid down severe punishment in case of failure of the company to make the payments to the deposit holders within the extended time and this provision has to be implemented in letter and spirit. 32. The learned counsel for applicant company referred to the case law in support of the contention that the extension can be granted more than once. The present is not a case where the Company Law Board had granted very little extension in repayment and there was absolutely no reason for the company to stop making payment just by filing this application. 33. In "Autolite India Limited" CA No.179/2013 in File No.15/56/97-CLB, decided on 02.06.2014 by the Company Law Board, the facts were that the scheme of repayment to the fixed deposit holders was approved by the Company Law Board on 04.11.1999. Thereafter the said company filed another application on 06.10.2001 seeking further extension, which was granted on 06.12.2001. That was a third application filed before the Company Law Board for extension of time, in which it was observed that the orde....
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....ension of time even on facts. 38. In compliance with the order of 09.11.2016, the authorised representative of the company filed list of the eight key managerial personnel of the company with their addresses. However, in the additional affidavit dated 10.11.2016 of the authorised representative of the company, the details of 10 persons stated to be the only officers of the applicant company with their complete addresses, was given. 39. Vide order dated 14.10.2016, the applicant company was directed to file projection and cash flow statements for the next three years, which were filed with CA No.25/2016 supported by affidavit of the authorised representative of the company dated 07.11.2016. The said statement is at Annexure A-16 attached with the said affidavit. The net loss projected for the financial year ending 31.03.2017 is Rs. 39.62 crores, the loss for the financial year 2017-18 is projected as 14.97 crores and for the financial year ending 31.03.2019 as Rs. 14.47 crores. 40. Having earned extension for such a long duration from the original period of maturity of fixed deposits and even getting the relief of reduced interest @ 8% per annum after the date of maturity, ....