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2017 (3) TMI 1716 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHIExtending the time in favour for repayment of balance outstanding amount - failure to repay the deposit accepted by the company or to pay interest thereon - Held that:- A number of extensions of time cannot be granted under Sub-section (2) of Section 74 without any ground, particularly when the company has not shown any interest in paying part of the deposit with interest to depositors either during the pendency of the Company Petition or this appeal. Learned Counsel for the Respondents have also informed that they will pay the dues by 31st March 2017. We make it clear that if the dues of depositors with interest is not paid by the Company by 31st March 2017, the Registrar of the Companies, NCR and Haryana will take steps to file petition under sub-section (3) of Section 74 of the Act 2013 before the Special Judge to punish the company and its directors and members and every officer of the company, whoever is in default. It will be open to the appellant and other depositors to sue the Company, its directors & officers for damages and fraud under Section 75 of the Companies Act 2013. Further if it comes to the notice of the Registrar of the Companies or the Central Government, that the business of the company was being conducted with intent to defraud its creditors or any other person or otherwise for a fraudulent or unlawful purpose, they may investigate into the affairs of the company either under Section 210 or 213 of the Companies Act 2013. It is also open to the appellant to move an application under clause (b) of Section 213 of the Companies Act 2013, if the circumstances so suggest that the business of the company was being conducted with intent to defraud its creditors and other persons. It is noted that failure to repay the deposit accepted by the company or to pay interest thereon is also disqualification for appointment of directors in terms of Section 164(2)(b) of the Companies Act, 2013 and any director who incurs any of the disqualifications specified in section 164 vacates the office of the director. Registrar of Companies may examine this aspect in case the Company fails to repay the dues by 31.03.2017 as already allowed by the Tribunal.
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