Case Law Details
Nitin Rekhan Vs Union of India & Ors. (Delhi High Court)
Held that as per Rule 2(b)(vii) of Companies (Acceptance of Deposits) Rules, 1975 read with General Circular No. 15/2015, the share application money given by the Petitioner for allotment of shares cannot be treated as “deposits”. Hence, penal interest not available to the petitioner.
Facts-
The Petitioner had paid Rs. 40,00,000/- to the Directors of Respondent Company for issuance of shares in the said company on 27th December 2010. The Respondent Company failed to allot the shares as promised and returned the money on 9th February 2018. It is alleged that the said Company failed to repay the interest accrued on the amount in question as per Rule 17 of the Companies (Acceptance of Deposits) Rules, 2014.
Accordingly, by the instant writ petition, the petitioner has prayed for passing to prosecute respondents u/s. 73 and section 76A of the Companies Act, 2013 and take appropriate action on the complaint filed by the petitioner.
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