To attract Companies (Acceptance of Deposits) Rules, 2014 for share application money, there has to be a clear nexus to show that the share application money amount was advanced in conformity with the provisions of the Companies Act, 2013 – Murlidhar Vincom Pvt. Ltd. Vs. Skoda (India) Pvt. Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that: (i) Prima-facie, amounts raised by way of share application money is not expressly covered in the transactions covered by sub clauses (a) to (i) of Section 5(8) of the IBC. (ii) For the CADR Rules to be attracted in respect of share application money, there has to be a clear nexus to show that the share application money amount was advanced in conformity with the relevant provisions of the Companies Act, 2013 (iii) Since the amount advanced cannot be related to Section 42 of the Companies Act, the applicability of Section 42(6) cannot be pressed as is being sought by the Appellant in the present case.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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