Question

What is the procedure of filing an application for non-payment of matured deposits by a company (NBFC & non-NB FC)  before the Company Law Board?

Answer

(a)

Form No. 4 prescribed under the Company Law Board Regulations, 1991 is to be filed in duplicate alongwith photocopy of Fixed Deposit Receipt issued by the company with the Company Law Board Benches at New Delhi/Mumbai / Chennai/ Kolkata..

(b)

A demand draft of Rs. 50/- duly drawn in favour of “The Pay & Accounts Officer, Ministry of Corporate Affairs” payable at New Delhi/Mumbai / Kolkata / Chennai as the case may be attached with the above said form No. 4.

(c)

Separate Form No. 4 along with demand draft of Rs. 50/- is to be filed by each depositors.

(d)

If a depositor have more than one deposit in his/her name in one company only one form No. 4 is required.

(e)

Jurisdiction of Bench is according to the situation of the registered office of the company and cases will be entertained by the Bench in respect of company whose registered office is situated within the jurisdiction of that Bench as indicated below:-

S.No.

Bench

States/Union Territories

1.

Kolkata Bench, Company Law Board, 9, Old Post Office Street, Kolkata.

States of Arunachal Pradesh, Assam, Bihar, Manipur, Meghalaya, Nagaland, Orissa, Sikkim, Tripura, West Bengal, Jharkhand and Union Territories of Andaman and Nicobar Island and Mizoram.

2.

New Delhi Bench, Company Law Board, 3^rd Floor, B- Block, Paryavaran Bhawan, C.G.O. Complex, Lodhi Road, New Delhi-110003.

NCT of Delhi, State of Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttaranchal and Union Territory of Chandigarh.

3.

Chennai Bench, Company Law Board, Corporate Bhawan (UTI Building), 3^rd Floor, No. 29, Rajaji Salai, Chennai- 600 001.

States of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Union Territories of  Pondicherry and Lakshadweep Island.

4.

Mumbai Bench, Company Law Board, NTC House, Narottam Morarjee  Marg,Ballard Estate, Mumbai- 400 038.

States of Goa, Gujrat, Madhya Pradesh, Maharashtra, Chhattisgarh and [Union Territories of Dadra and Nagar Haveli and Damman and Diu]

Question

What action is required if company do not make payment in compliance of CLB’s order?

Answer

(a)

In case of  non compliance of CLB Orders by NBFC a complaint is to be lodged by the Depositors with the office of RBI in the State where the registered office of the company is situated.

(b)

In case of non compliance of CLB Orders by other companies complaints are to be lodged with the ROC of the State in which the registered office of the company is situated.

Question

What is the procedure/ requirement for filing a petition/ application u/s 397/398 of the Companies Act, 1956?

The requirement of filing a petition/application u/s 397/398  of the Companies Act, 1956 are as under:-

i.                     The petitioners must satisfy the requirement of section 399 of the Companies Act, 1956 i.e. for a company limited by shares the petitioners must constitute either 100 members or one-tenth of the total number of the members of the company whichever is less or the petitioners must hold one-tenth of the issued share capital of the company and in the case of a company not having a share capital the petitioners must constitute one-fifth of the total number of its members.

ii.                   In case where the number of the persons required to satisfy (i) above and to be made petitioners is large in number, any one or more of them having obtained the consent in writing of the rest may make the petition/application on behalf and for the benefit of all of them. 

iii.                  The Central Government may authorise any member or members of the company to apply under Section 397/398 even if (1) above is not satisfied.

iv.                 In case the members complaining do not satisfy 1 above they may apply to the Central Government, who may, if in its opinion circumstance exist which make it just and equitable to do so, authorize the members of the company to apply to the Company Law Board u/s 397/398 notwithstanding that the requirement of 1 above are not fulfilled.

v.                   The petition/application has to be drawn on substantial paper of full scape size in double space as required under regulation 11 and 16 of the Company Law Board Regulation 1991.

vi.                 The petition has to be drawn in form No.1. as prescribed under Company Law Board Regulation 1991.

vii.                Requisite fee towards a petition i.e.  Rs. 5,000/- and Rs. 50/- towards application by way of demand draft drawn in favour of “Pay & Accounts Officer, Ministry of Corporate Affairs, New Delhi/Kolkata/Mumbai/Chennai” has to be remitted.

viii.              Petition/ Application has to be accompanied by affidavits verifying the petition/\application from all the petitioners drawn on non-judicial stamp paper of requisite value duly attested by  Notary public/ Oath Commissioner in accordance with regulation 14(8) & (9) of the Company Law Board Regulation 1991.

ix.                 The petition/application has to be served on the concerned Registrar of Companies and Regional Director, Ministry of Corporate Affairs and on all the respondents and evidence of service be produced.

x.                   The petition/application alongwith annexures duly paginated and serially numbered with proper index and required to be bound properly in the paper book.

xi.                 Where the petition is filed by the authorised representative, Memorandum of Appearance is to be appended and in case of an advocate, a duly executed Vakalatnama should be filed.