Circular No.09/2015 on Deposit
19 June 2015
The Ministry has come out with a Circular dated 18/06/2015 with a Clarification on repayment of deposits accepted by the companies before the commencement of the Companies Act, 2013 under section 74 of the said Act, clarifying that the Company Law Board has been empowered to exercise the powers of National Company Law Tribunal, till its constitution. Thus, a depositor is free to file an application under section 73(4) of the said Act, with the Company Law Board if the company fails to make repayment of deposits accepted by it.Further the company may also file application under section 74(2) of the said Act with the Company Law Board seeking extension of time in making the repayment of deposits accepted by it before the commencement of the provisions of the said Act. The Circular is emphasising on the explanation appearing below Rule 19 of the Companies (Acceptance of Deposits) Rules, 2014 explaining that the Companies can repay deposits accepted prior to 1st April, 2O14 in accordance with the terms and conditions for which the deposits had been accepted. The Circular is also empowering the Registrar of Companies (ROC) for filing of prosecution against a company which fails to make repayment of deposits accepted by it under the provisions of the Companies Act, 1956 or 2013, subject to the contents of Section 74 and Deposit rules, 2014.