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2019 (1) TMI 1509 - HC - Companies LawRepayment of deposits accepted before commencement of Section 74 of the Companies Act, 2013 - time limit to repay in terms of Section 74(1) - Held that:- By virtue of the order dated 03.11.2016, the period of compliance with the requirement of Section 74(1) of the Companies Act, 2013, as extended earlier by the tribunal in the company petition in terms of order dated 11.03.2016 stood further extended upto 31.12.2016 pursuant to directions of the appellate tribunal in appeal - This remains the factual position as shown by careful reading of the final order in appeal passed on 31.01.2017, wherein the appellate tribunal expressly said that it had found no grounds to extend the period “beyond 31st December, 2016”. It is clear that the gravamen of the charge on which the prosecution under the penal clause contained in Section 74(3) is to be founded has to be to the effect that the company to be prosecuted had failed to abide by its liability under Section 74(1) or within the extended period granted by the tribunal on a petition to that effect. Since the order of the tribunal does not attain finality inasmuch as there is a remedy of appeal available there against, the provision contained in Section 74(2), in so far as it refers to the time allowed “by the tribunal” will have to be construed as the time allowed “by the tribunal” alongwith modification in such regard if ordered in appeal by the appellate tribunal. The criminal complaint on which the cognizance was taken on 20.09.2016 was rendered premature or infructuous upon the appellate tribunal entertaining the appeal under Section 421 and granting an interim protection extending the period of compliance upto 31.12.2016. By virtue of the subsequent order of the appellate tribunal, bottom had gone out of the case of the respondent in the aforementioned criminal complaint case, continuation whereof would undoubtedly be an abuse of the process of the court. Petition allowed.
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