Premature filing of petition u/s. 117c of companies act, 1956

Chhaya Soni (Querist) 01 October 2014 This query is : Resolved
Respected Sirs,

If a company fails to pay interest for more than 6 months can a debenture holder file a petition u/s. 117C of companies Act prematurely. The maturity of the debenture is not arrived, but due to non payment of interest and also company being chit fund company, the debenture holder wish to get his principle money with accrued interest back. The section is only for the redemption of matured debenture, however amended act says that even if the default is made in payment of interest, debenture holder ask for the refund of principle and interest which is still not notified. Can anybody provide relevant judgments of CLB, High Court, or Supreme Court also please provide your suggestion on the same.

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ABDUL RAZIQUE (Expert) 03 October 2014

SORRY THIS SITE not for provide any recitation or judgement.

Section 117C of the Companies Act requiring DRR
This Section requires every company issuing debentures to create a debenture redemption reserve (“DRR”) for the redemption of such debentures and transfer an ‘adequate’ amount from its profits every year to such DRR until the issued debentures are redeemed. However, as per Ministry of Corporate Affairs clarification circular on February 11, 2013[3], no DRR is required to be maintained in case of privately placed debentures by NBFCs.

T. Kalaiselvan, Advocate (Expert) 05 October 2014
You have yourself stated that the new law in connection with yur query has not been notified yet, then what answer do you require any more on the subject. Citations or judgments are not provided here.