ELECTREX INDIA LIMITED Vs. USHA D ROHRA

JUDGEMENT

(1.) THIS appeal is by M/s. Electrex (India) Limited aggrieved by a common order dated 31-7-2000 passed in C. A. Nos. l-202/58 (9)/srb/2000/srb/98 on the file of the Company Law Board, Southern region Bench, Chennai.

(2.) THE appellant is a Company registered under the provisions of the Companies Act, 1956. Its office is at Peenya Industrial, Bangalore. Respondents are depositors having made 1-3 year deposits with the Appellant company to more than 26 lakhs. The said deposits have been received by the Appellant company as borrowings utilised towards the working capital requirements of the appellant. Due to foreign competition and demand recession, the appellant became sick and was forced to make a reference to the Board of industrial and Financial Reconstruction (for short, 'bifr') under Section 15 of the Sick industrial Companies (Special Provisions)Act, 1985 ('the Act' for short) during January 2000. BIFR registered the aaid reference as Case No. 49/2000. Enquiry was ordered in the matter. IFCI was appointed as Operating agency to prepare comprehensive report in the matter.

(3.) RESPONDENTS made applications under section 58a (9) of the Companies Act, 1956 before the Company Law Boand for a direction to the appellant to repay the said deposits. Matter was heard. After hearing, Company law Board has chosen to pass an order ordering repayment of the deposits together with up-to-date interest in the following manner : "all deposits up to Rs. 5,000/- by 15-9-2000 all deposits above Rs. 5,000/- and up to Rs. 25,000/- in two installments by 30-9-2000 and 30-11-2000; and all deposits above Rs. 25,000/- in three installments by 30-9-2000, 30-11-2000 and 31-1-2001. "