Dear Forum Members

I request yout to kindly clarify my doubt.

As per Section 74(1)(a) of the Companies Act, 2013 read with Rule 20 of the Companies (acceptance of deposit) Rules, 2014, If any deposit or any interest remains unpaid on commencement of the New Companies Act 2013, the Company shall file, within three months (i.e. 30th June, 2014), with ROC a statement in Form DPT-4 providing such information of all deposits accepted and outstanding (including interest dues if any) as on 31st March 2014. Such companies shall also repay the dues on or before 31.03.2015 or on due date of repayment, whichever is earlier. For any extension on repayment the company should approach National Company Law Tribunal and obtain necessary order.

Under New Company law, loan received by companies (both Public & Private) from shareholders or relatives of director’s will be considered as deposits. If loan is received from other individuals by any company (both Public & Private), it will also be considered as deposits.

My query in this regard is as follows:

A private limited company has availed unsecured interest free loans from its members and relatives of directors. The loan availed is outstanding in the books as on 31st March 2014. Under the provisions of the Companies Act, 1956, the amount availed and outstanding as on 31st March 2014 will not be treated or considered as “Deposits” since private companies were exempted and are allowed under the Companies Act, 1956, to avail loan from its members and relatives of directors.

1.           Since the loan amount is outstanding in the books as on 31st March 2014, kindly clarify whether it is mandatory for the company to file Form DPT-4 with ROC on or before 30th June 2014, disclosing the outstanding amount as deposits.

2.           Whether such outstanding amount has to be compulsorily repaid by the company on or before 31st March 2015 or on due date whichever is earlier.

3.           If there is NO stipulation for repayment from the Lender, whether the company (borrower) will be allowed to retain the outstanding loan amount in its books beyond 31st March 2015, without repaying the same and without obtaining any order from National Company Law Tribunal.

I request the members to clarify my above queries.

With regards

Muralidharan