Section 74- Repayment of deposits, etc., accepted before commencement of this Act.

(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.

(2) The Tribunal may on an application made by the company, after considering the financial condition of the company, the amount of deposit or part thereof and the interest payable thereon and such other matters, allow further time as considered reasonable to the company to repay the deposit.

(3) If a company fails to repay the deposit or part thereof or any interest thereon within the time specified in sub-section (1) or such further time as may be allowed by the Tribunal under sub-section (2), the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than one crore rupees but which may extend to ten crore rupees and every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with both.

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Category : Company Law (3352)
Type : News (12472)
Tags : Companies Act (1821) Companies Act 2013 (1595)

One response to “Extract of Section 74 of Companies Act, 2013”

  1. Unitech Fixed Deposit says:

    Unitech recently failed payment of depositors money (Rs 30 Crore) and is unlikely to pay the remaining Rs 550 Crores. The Company Law Board, or CLB has requested Registrar of Companies to pursue case against Unitech Limited under Section 74 (2) and (3) of Companies Act 2013. Here’s the notification clb.nic.in/Publication/Principal_Bench_New%20Delhi_Bench/2016/Others/Unitech%20Ltd._001.pdf

    My question is:
    (1) What is the crux from CLB order of 4th July 2016.
    (2) What are the legal options for depositors, majority of them are senior citizens.
    (3) What is the total market value of Unitech assets, if sold, or its net worth?
    (4) Why is this company’s stock price rising, while Supreme Court and CLB both have issues orders against Unitech?

  2. Nidhi says:

    what is the procedure if a company wants to extend time for repayment of deposits after 31st March 2015?
    please give the complete eprocedure.

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