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PROCESS OF FILLING OF APPLICATION WITH COMPANY LAW BOARD FOR EXTENTION FOR TIME OF REPAYMENT OF DEPOSIT

REPAYMENT OF DEPOSIT: As per Section 74(1) (b) Every company which have deposit as on 1st April, 2014 or filed DPT:4 for deposits have to repay within one year from such commencement (31st March, 2015) or from the date on which such payments are due, whichever is earlier.

Delegation of Power of Tribunal to COMPANY LAW BOARD:

But many companies are not able to make repayment before 31st March, 2015 then Companies required making an Application before COMPANY LAW BOARD for Extension for period for repayment of Deposits. The power of extension is given to tribunal under Section 74(2) but as per Company removal of difficulty order dated 6th June, 2014 Ministry have delegated power of tribunal u/s 74(2) to COMPANY LAW BOARD.

Language of Removal of Difficulty Order:

Until a date is notified by the Central Government under sub section (1) of Section 434 of the Companies Act, 2013 (18 of 2013), the Company Law Board constituted in pursuance of sub: section (1) of Section 10E of the Companies Act, 1956 (1 of 1956) shall exercise the jurisdiction, power, authority and functions of the Tribunal under Sub:Section (2) of Section 74 of the said Act.

Crux: Power of Tribunal u/s 74(2) has been delegated to CLB until unless tribunal doesn’t come into force.



FOR EXTENSION FOR REPAYMENT OF DEPOSIT BELOW GIVEN IS PROCESS:

Government of India has passed order “F. No. 10/36/2001:COMPANY LAW BOARD” Dated: 28th January, 2015: In exercise of power conferred by sub:section (6) of Section 10E of the Companies Act, 1956 The Company Law Board hereby makes the following regulations further to amend the COMPANY LAW BOARD, regulations 1991.

AS PER COMPANY LAW BOARD ORDER PROCESS OF APPLICATION:

STEP I: Hold Board Meeting:

• Board Meeting of Company will be hold

• Pass the Resolution to make application with COMPANY LAW BOARD

STEP II: DPT:4:

• Check Whether DPT:4 field or not.

• If not Filed then file before making application with COMPANY LAW BOARD.

STEP III: Advertisement in News Paper:

Before submitting the application under sub section (2) of Section 74 of the Companies Acts,2013, The Company Shall:

1. Publish a general Notice in Two (2) leading English daily newspaper and

2. In one (1) News Paper publish in the language of the region, having wide circulation in the region in which the Registered Office of the Company is situated in the manner specified in form No 8 in Annexure II.

STEP IV: Send Copy of Notice to Deposit Holders:

The company shall also serve a copy of the General Notice in the form No. 8 to every Deposit holders whose deposits are covered under the application seeking extension of the time by

• SPEED POST and

• SHALL PRODUCE EVIDENCE OF SUCH SERVICE at the time of presentation of such application in COMPANY LAW BOARD”.

STEP V: Preparation of Documents:

• Prepare Application – Form No. 7 (See Regulation 52)

• Memorandum of Appearance as per Annexure II (Form:5).

• Affidavit verifying the Petition.

• Demand draft of Rs 5000/: in favour of ‘Pay and Accounts officer, MCA, payable at New Delhi.

• Certified True of Last three financial years Balance Sheet immediately proceeds the year of application.

STEP VI: Documents required to be attach with application (Form:7) for extension with COMPANY LAW BOARD:

I. CTC of Board Resolution passed by Company for filing of the Application.

II. Latest return of Deposits filed with the Registrar. (DPT:4).

III. Certified True of Last three financial years Balance Sheet immediately proceeds the year of application.

IV. Copies of advertisement inviting deposits.

V. Memorandum of Appearance as per Annexure II.

VI. Affidavit verifying the petition.

VII. Original Cutting of General Notice published in the Newspaper

VIII. Evidence of service of General Notice to the deposit holder.

IX. Copy of Demand Draft.

X. Any other document can be enclosed optionally.

CONCLUSION:

Above given is complete process for making of application with Company Law Board for extension for time period repayment of Deposit by the Companies under Companies Act, 2013.


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Category Corporate Law, Other Articles by - CS Divesh Goyal 



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