ANANDARAMA REDDY Vs. PAGE INVESTMENTS AND FINANCIAL SERVICES LIMITED

JUDGEMENT

(1.) THE applicant hereinabove has made the application under Section 58A(9) of the Companies Act, 1956, against Page Investments and Financial Services Limited (hereinafter referred to as "the company") for failure on its part to repay the deposits with interest thereon as per the details given in the application. THE application has been considered and disposed of under Section 45QA of the Reserve Bank of India Act, 1934 (hereinafter referred to as "the Act"), in view of the fact that the company is a non-banking financial company.

(2.) According to the applicant-depositor, he deposited with the company a sum of Rs. 20 lakhs for a period of 12 months and Rs. 1 lakh by way of short-term deposit, carrying interest at 14 per cent, per annum. Both the deposits have already matured. In spite of repeated demands and the legal notice dated December 23, 1996, the company failed to repay the deposits. Hence, this application.

(3.) THE company is holding the balance deposit amount of Rs. 2 lakhs payable to the applicant, out of which a sum of Rs. 50,000 is kept apart for the funeral expenses and construction of Samadhi for the applicant's mother on the request of the applicant and his brothers. Thus, only a sum of Rs. 1,50,000 represents the remaining deposit payable to the applicant for which he has been collecting interest by way of account payee cheque till September, 1996. In the meanwhile, the company was instructed by Angel Merchants Limited, by letter dated November 5, 1997, not to pay either any interest or the principal amount of deposit to the applicant. THE applicant has taken a loan from the company which remains outstanding, for which the company has a lien on the monies of the applicant. In the circumstances, the company prays for dismissal of the application.