Ministry of Corporate Affairs issues notification for constitution of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT); Hon’ble Justice S.J. Mukhopadhaya, Judge (Retd.), Supreme Court of India joins a
1. XYZ Properties Pvt Ltd (the Vendor) constructed a complex of 50 Flats in Noida named Eden Towers. In the printed brochure, it was mentioned that a sum of Rupees 25/- per sqft. has to be deposited by the purchasers as -Eden Appartment Owners Association Welfare Fund- which will be handed over to the Association after its formation. Accordingly, all the purchasers have deposited the money at the time of Registration of the Flats during the period 2013 to 2014. 2. In the Agreement for Sale it has been mentioned that:- Quote Article X- Sinking Fund It has been agreed between the Vendor and the purchaser that decency of the building is to be maintained and taking into account the kind of construction and for the aforesaid purpose it has been agreed to have a Sinking Fund to be created for the purpose of meeting the Capital Expenses and other incidental thereto which may be necessary from time to time in respect of the said building. Unquote The Eden Apartment Owners Association has been formed in the month of June 2016. The Vendor is now going to handover the charge of maintenance to the newly formed Association wef 01.09.2016. During the discussions regarding charge handover / takeover, the Association claimed for transfer of Sinking Fund (Association Fund) with interest keeping in view the provisions of Section 73 to 76 of the Companies Act 2013 read with Rule 17 of Companies (Acceptance of Deposits) Rule 2014. Vendor agreed to transfer the above Sinking Fund (Association Fund) but not agreed to pay the interest.
Advice is sought as to whether their claim for interest on Sinking Fund Deposits (Association Fund) is valid as per the Act on the plea that the Vendor is a Private Company and kept the deposits for more than 365 days?