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2014 (7) TMI 59 - Board - Companies LawApplication under Section 117C - Debenture redemption reserve - Company's liability to create such reserve - Option to convert debentures - Held that:- the provisions of Section 117C(4) are applicable to all debentures whether issued prior or after the introduction of the Amendment Act, 2000, i.e., 13.12.2000 and pending redemption - provisions of Section 117C(4) being analogous to Section 58A(9) and 45QA(2) are beneficial provisions intended to protect the interest of debentureholders. Such a provision, in my view, should be exercised in favour of aggrieved investors. The above view taken by CLB cannot be lost sight of and the interest of the aggrieved debentureholders deserves to be protected by invoking the provisions of Section 117C(4) of the Act. Respondent company is hel-bent on refusing the right of the applicants to get relief under Section 117C of the Act on frivolous grounds either by resorting to limitation act or faulty application affirmed by one of the applicants or non-eligibility of the application for redemption of impugned debentures under the provisions of Section 117C of the Act. - application filed by the applicants under section 117C of the Act is considered to be maintainable and according the respondent company is hereby directed to redeem the debentures covered by this application by payment of the principal amount and interest due thereon as per the terms and and conditions of issue of such debentures within 3(three) months of issue of such order - Decided in favour of appellant.
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