Company Law Board empowered to direct company to make repayment ‑ Failure to comply with order is punishable with imprison­ment and fine - Companies Law - Letter : No. 1/6/88 CL V,

Letter : No. 1/6/88 CL V, dated 29-8-1989. Subject:- Company Law Board empowered to direct company to make repayment Failure to comply with order is punishable with imprison ment and fine As a measure of protecting the interest of depositors, section 58A has been amended by the Companies (Amendment) Act, 1988 to provide for compulsory repayment of deposits, unless renewed in accordance with prescribed rules. The amended provisions of sub section (9) thereof empower the Company Law Board to take cognizance of any case of repayment of deposits on maturity and to direct the company to make repayment of such deposits within such time and subject to such conditions, as may be specified in the order. Non compliance of the orders of the Company Law Board would attract penalty by way of imprisonment, which may extend to three years and shall also be liable to a fine of not less than Rs. 50 for every day till such non compliance continues. The amended provisions shall come into force with effect from 1st September, 1989. 2. The aggrieved depositors may make an application (in triplicate) to the Company Law Board in the prescribed form, with an application fee of Rs. 50 at the following addresses : 1. In respect of companies which have their registered offices located in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan, Himachal Pradesh and Jammu Kashmir Company Law Board, Northern Region Bench, 5th Floor A Wing Shastri Bhavan, New Delhi- 110 001 2. In respect of companies which have their registered offices located in West Bengal, Orissa, Bihar, Assam, Meghalaya, Tripura, Manipur and Nagaland Company Law Board, Eastern Region Bench, 9, Old Post Office Street (6th Floor), Calcutta-700 001 3. In respect of companies which have their registered offices located in Tamil Nadu, Karnataka, Andhra Pradesh, Kerala and Union Territory of Pondicherry Company Law Board, Southern Region Bench, Block I, V-Floor, Shastri Bhavan, 26, Haddows Road, Madras-600 001 4. In respect of companies which have their registered offices located in Maharashtra, Gujarat, Madhya Pradesh, Goa, Daman Diu Company Law Board, Western Region Bench, NTC House, 2nd Floor, 16, NM Marg, Ballard Estate, Bombay-400 038. The Company Law Board (Bench) Rules, 1975 have been amended a copy of the notification prescribing the application form is enclosed. The application can either be filed personally or may be sent by post. 3. It is clarified for information of the depositors that even the deposits, which had matured before the amended provisions of section 58A came into force but have not been re paid, would be covered by the said amended provisions of law. It may also be stated that the Company Law Board may, if it is satisfied, also pass orders under section 58A(9), on its own motion.