CS Divesh Goyal
Process Of Filling Of Application With Company Law Board For Extension For Time Of Repayment Of Deposit
As per Section 74(1)(b) of Companies Act, 2013 if a Company has any Unsecured Loan as on 01.04.2014 (and outstanding as on date) which is borrowed from Non Directors and Non Companies then Company has either of the below options:
a) Repay the money borrowed from Non Companies and Non Directors upto 31.03.2015.
b) If the Company does not have funds or is unable to repay such loans by 31.03.2015 then application for extension for repayment of loan needs to be filed before the Company Law Board.
Exemption: If the Company has taken Unsecured Loan from Promoters and their Relatives pursuant to a condition mentioned in the sanction letter of the Bank or Financial Institution.
Procedure to be followed by the Company:
a) Check if the Company can repay the Outstanding Unsecured Loan from Non Directors and Non Companies by 31.03.2015.
b) If the Unsecured Loan from Non Directors and Non Companies falls under exemption as described above, kindly send us copy of Sanction Letter and List of Unsecured Loans for verification of compliance of provisions of Section 74(1) of Companies Act, 2013.
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 subsection (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 prescribing the procedure-
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 Act, 2013, The Company Shall:
- Publish a general Notice in Two (2) leading English daily newspaper and
- 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
- 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
- Certified True of Last three financial years Balance Sheet immediately proceeds the year
STEP-VI: Documents required to be attach with application (Form-7) for extension with COMPANY LAW BOARD:
- CTC of Board Resolution passed by Company for filing of the Application.
- Latest return of Deposits filed with the Registrar. (DPT-4).
- Certified True of Last three financial years Balance Sheet immediately proceeds the year of application.
- Copies of advertisement inviting deposits.
- Memorandum of Appearance as per Annexure II.
- Affidavit verifying the petition.
- Original Cutting of General Notice published in the Newspaper
- Evidence of service of General Notice to the deposit holder.
- Copy of Demand Draft.
- 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. So Companies who had deposit as on 01.04.2014 and who are finding it difficult to repay the same on or before 31.03.2015, shall apply to Company Law Board fro extension of time.