CIPL, a non-banking finance company, had submitted an application for approval of a scheme of arrangement under section 391 of the Companies Act, 1956 before the High Court. Soham, a depositholder of CIPL, has filed an a
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2015
CIPL, a non-banking finance company, had submitted an application for approval of a scheme of arrangement under section 391 of the Companies Act, 1956 before the High Court. Soham, a depositholder of CIPL, has filed an application before the Company Law Board (CLB) for ordering repayment of deposits. The CLB passed an order to repay the deposits under section 45QA(2) of the Reserve Bank of India Act, 1934. The CIPL challenged the order of CLB in the High Court. Offer your comments whether CLB is correct in passing such an order in the given circumstances.
Answer & Explanation:
The facts of the given question is similar to the facts of Manipal Sowbhagya Nidhi Ltd where Hon'ble High Court of Kerala held that where application have been filed before the CLB seeking the repayment of deposit, When an application for approval of a scheme of arrangement under Section 391 of Companies Act 1956 is pending before the High Court, CLB ought not to grant any relief and on the other hand, it should dispose the same by ordering to await the order of High Court.
Topics: Corporate Restructuring
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