If Tribunal is approached for extension, extension may be granted once and not repeated extension can be inferred from Section 74 of Companies Act, 2013 – Ansal Housing Ltd. – NCLAT New Delhi

As per Section 74(1)(b) repayment was to be done within three years from commencement or on or before expiry of the period for which deposits were accepted. Even if in a case of non-clearance of the deposits under Section 74(2) the Tribunal has been granted discretion to extend the time. In Sub-section (2) categorically it has been mention that the Tribunal may on an application allow further time. The word “shall” has not been used and as such it was discretionary jurisdiction of the tribunal to extend the time. It is also clear that purport of Section 74 is to enable a company accepting deposit to grant some breathing time for repayment of the deposits. On examination of the provision it is also clear that the Tribunal has not been granted discretionary power to exercise the same in discreet manner. We are of the opinion that if Tribunal is approached for extension, extension may be granted once and not repeated extension can be inferred from the aforesaid provision. This is the reason that a stringent and panel provision has been incorporated in sub-section (3) of Section 74 of the Act.

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