Deposits u/s 74

813 views

Save Share

RISHI

156 Points Posted on 20 June 2014

"Section 74. (1) Where in respect of any deposit accepted by a company before the
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 which
such payments are due, whichever is earlier."

SECTION CLEARLY STATES THAT RETURN OF DEPOSIT (DPT-4) SHALL BE FILED WITHIN 3 MONTHS FROM COMMENCEMENT OF ACT OR 3 MONTHS FROM THE DATE ON WHICH SUCH PAYMENTS ARE DUE. IT MEANS IF THERE ARE LONG TERM BORROWING WHICH ARE NOT STILL DUE, RETURN OF DEPOSIT NEED NOT BE FILED. IN OTHER WORDS, IF WE ASSUME THAT THESE PAYMENTS ARE DUE ON 31-03-2015 DUE TO COMMENCEMENT OF NEW ACT, RETURN OF DEPOSIT SHALL BE FILED TILL 30-06-2015.

PL. GIVE EXPERT COMMENTS.

Replies (3)

CA. Amit G. Chandani

Entrepreneur/Consultant

1099 Points Posted on 21 June 2014

Deposits accepted under erstwhile 1975 Rules whose payment falls due at any time after 01.04.2014 can file DPT-3 within 3 months from the date on which payments are due. Repayment shall be governed by Explanation to Rule 19 of 2014 Rules.

For deposits which were not deposits under 1975 Rules and now such deposits falls in deposits under 2014 Rules, DPT-4 need to be filed before 30.06.2014. Such deposits need to be repaid before 31.03.2015.

RISHI

156 Points Posted on 26 June 2014

Sir, I am saying that SECTION CLEARLY STATES THAT RETURN OF DEPOSIT (DPT-4) SHALL BE FILED WITHIN 3 MONTHS FROM COMMENCEMENT OF ACT OR 3 MONTHS FROM THE DATE ON WHICH SUCH PAYMENTS ARE DUE. IT MEANS IF THERE ARE UNSECURED LONG TERM BORROWING WHICH ARE NOT DUE, RETURN OF DEPOSIT NEED NOT BE FILED. IN OTHER WORDS, IF WE ASSUME THAT THESE PAYMENTS ARE DUE ON 31-03-2015 DUE TO COMMENCEMENT OF NEW ACT, RETURN OF DEPOSIT SHALL BE FILED TILL 30-06-2015. PL. interpret the section.

S.MEENAKSHI

Deputy Registrar of Company Affairs

22 Points Posted on 06 January 2015

My doubt is, under Section 74(1)(b) of the Companies Act, 2013, if the date of maturity of the fixed deposit is 25.5.2014, whether the company has to make the repayment on 25.5.2014 or whether the company can take time till 31.3.2015 to repay the said matured f.d. Some opine that even if the deposits are maturing on 25.5.14, company can make the payment on or before 31.3.2015. If so, why the explanation under Rule 19 of Companies (Acceptance of Deposits) Rules, 2014 is given. Anyone can clarify me.