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TMI Blog2017 (3) TMI 1716X X X X Extracts X X X X X X X X Extracts X X X X ..... d before the commencement of the Act 2013, as quoted below: - "74. Repayment of deposits, etc., accepted before commencement of this Act. - (1) Where in respect of any deposit accepted by a company before the commencement of this Act, the amount of such deposit or part thereof or any interest due thereon remains unpaid on such commencement or becomes due at any time thereafter, the company shall- (a) file, within a period of three months from such commencement or from the date on which such payments, are due, with the Registrar a statement of all the deposits accepted by the company and sums remaining unpaid on such amount with the interest payable thereon along with the arrangements made for such repayment, notwithstanding anything contained in any other law for the time being in force or under the terms and conditions subject to which the deposit was accepted or any scheme framed under any law; and (b) repay within one year from such commencement or from the date on which such payments are due, whichever is earlier. (2) The Tribunal may on an application made by the company, after considering the financial condition of the company, the amount of de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h may extend to two crore rupees, or with both, as per sub-section (3) of Section 74 of the Act 2013. 6. The appellant is a depositor who invested in the Fixed Deposit scheme(s) of the company on 12th June 2013. The respondent company was liable to pay back the matured amount as per sub-section (1) of Section 74 of the Act on its maturity or at best within a year i.e. by 31st March 2015 but not paid. 7. Further grievance of the petitioner is that the Tribunal since filing of the petition under sub-section (2) of Section 74, granting time after time to the company since 2015. Now by the impugned order, the Tribunal has extended the time up to 31st March 2017, to repay the dues with interest as is payable to the depositors. 8. Learned counsel for the appellant submitted that there is no provision made under Section 74 to constitute any Hardship Committee to assess the payment situation, as the Tribunal is competent to extend time taking into consideration the financial condition of the company, the amount of deposit or part thereof and interest payable and such other matters which company brought to the notice of the Tribunal, as provided under sub-section (2) of Section 74 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Minerals (Development & Regulation) Act, 2010 by way of which an exception to the sale of only auctioned mines had been inserted and now the captive mines are also permitted to be transferred. 9. In the wake of the said amendment as a result of simultaneous ongoing efforts to reduce its debts including repayment of outstanding fixed deposits, the Company has entered into an Implementation Agreement with UTCL on 31.3.2016 for sale of its identified business of manufacture and sale of cement and clinker to the transferor company at an enterprise value of Rs. 15,900 crores, which EV was subsequently increased to Rs. 16,189 crores. The Respondent craves leave of this Hon'ble Tribunal to produce the said agreement as and when directed as the same is not being filed along with the present affidavit to preserve the confidentiality thereof. The said transaction is being effected between the respondent Company Transferor-1 Company) along with a subsidiary viz. M/s. Jaypee Cement Corporation Limited (Transeror-2 Company), and M/s. Ultra Tech Cement Limited (Transferee Company) and the business is being sold as a going concern on a slump exchange basis. 10. In the said ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s order should be brought to the notice of the Branch Manager, IDBI Bank, Red Cross Road Branch, New Delhi. Post the matter on 21st February 2017 at 10.30 A.M." 11. The impugned order was passed by Tribunal on 17th June 2016 allowing the Company time till 31st March 2017 to pay the deposits with interest. Even after passing of the impugned order dated 17th June 2016 and now more than eight months have passed but the company has not deposited any amount in its account, nor paid any amount to any of the depositors. Now, the only ground taken by the Company is that a scheme is pending consideration before the High Courts regarding selling of the plants. 12. We have heard learned counsel for the parties and perused the record. Now, approximately three years have passed since 1st April 2014 when Sub-section (1) of Section 74 came into effect but the deposits with interest have not been paid to the depositors. Even after extension of time granted under sub-section (2) of Section 74 there is no likely hood of payment. In the circumstances, while we are not interfering with the impugned order extended time granted by the Tribunal up to 31st March 2017, but direct the Tribunal to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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