Report No. 143
Relevant Statutory Provisions
3.1. The provisions which may be required to be amended are located in the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 framed by the Central Government under the authority conferred by section 58A of the Companies Act, 1956.
3.2. Companies Act, 1956.-
"58A. Deposits not to be invited without issuing an advertisement.-
(1) The Central Government******
(9) Where a company has failed to repay any deposit or part thereof in accordance with the terms and conditions of such deposit, the Company Law Board, if it is satisfied, either on its own motion or on the application of the depositor, that it is necessary so to do to safeguard the interest of the company, the depositor or in the public interest; direct, by order, the company to make repayment of such deposit or part thereof forth with or within such time and subject to such conditions as may be specified in the order:
Provided that the Company Law Board may, before making any order under this sub-section, give a reasonable opportunity of being heard to the company and the other persons interested in the matter."
3.3. Companies (Acceptance of Deposits) Rules, 1975 (called rules hereunder).-