Interpretition of the term 'borrowing'

Others 382 views 1 replies

Can any one tell me, whether the term 'borrowing' u/s 293(1)(d) of the Companies Act 1956, includes public deposit  or not.

If the answer is yes, then why?

Replies (1)

yes, the term borrowing includes public deposit,    The section states that 'Borrows Moneys'  so accepting of deposits from the public is also borrowing money from public, so the term therefore includes acceptance of deposits from public.

Also please read sub-section 4 of the section 293, it states as follows:

(4) The acceptance by a banking company, in the ordinary course of itsbusiness, of deposits of money from the public, repayable on demand orotherwise, and withdrawable by cheque, draft, order or otherwise, shall not bedeemed to be a borrowing of moneys by the banking company within themeaning of clause (d) of sub-section (1).

So a co other than a banking co accepting deposits from public will be considered as borrowing adn the provison of teh section will apply accordingly.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details