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General provisions regarding repayment of deposits | Company Vakil Legal Library

Companies (Acceptance of Deposits) Rules, 1975

8. General provisions regarding repayment of deposits

32[(1)] Where a company
makes repayment of a deposit after the expiry of a period of six months from
the date of such deposit but before the expiry of’ the period for which such
deposit was  accepted by the Company, the rate of interest payable by the
company on such deposit, shall be reduced by 33[one per cent] from 4[the
rate which the company would have paid the deposit been accepted for the period
for which such deposit had run] and the company shall not pay interest at any
rate higher than the rate as so reduced:

 

34[Provided that
nothing contained in this rule shall apply to the repayment of any deposit
before the expiry of the period for which such deposit was accepted by the
company, if such repayment is made solely for the purpose of-

 

(a) complying with the provisions of the
Non-Banking Non-financial Companies (Reserve Bank) Directions, 1966; or

 

(b) complying with the
provisions of rule 3; or

 

(c) converting, with the consent of the
depositors, into secured debentures in accordance with the guidelines, issued
by the Government of India from time to time, regarding the issue of
“rights” debentures; or

 

(d) providing war risk or other related
benefits to the personnel of the naval, military or air forces or to their
families, on an application made by the associations or societies formed by
such personnel, during the period of emergency declared under Article 352 of
the Constitution.

 

35[Provided further
that where a company permits a depositor to renew his deposit, before the
expiry of the period for which such deposit was accepted by the company, for
availing of the higher rate of interest, the company shall pay interest to such
depositor as higher rate if-

 

(i) such deposit is
renewed in accordance with the other provisions of these rules and for a period
longer than the unexpired period of the deposit, and

 

(ii) the rate of
interest as stipulated at the time of the acceptance or renewal of deposit is
reduced by one per cent for the expired period of the deposit and is paid or
adjusted or recovered accordingly.]

 

Explanation- For the purpose of
this rule, where the period for which the deposit had run contains any part of
a year, then, if such part is less than six months, it shall be excluded and if
such part is six months or more, it shall be reckoned as one year.]

 

36[(2) Where depositors
so desire, deposits may be accepted in joint names not exceeding three, with or
without any of the clauses, namely, “Either or Survivor”,
“Number one or Survivor”, “Anyone or Survivor”. ]

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