Case Law Analysis
|National Company Law Appellate Tribunal
Section 74 Companies Act | Deposit Repayment Obligation Survives Pending Probate Proceedings: NCLAT
The NCLAT has ruled that a company’s statutory duty to repay matured deposits under Section 74 cannot be suspended due to succession disputes or pending probate proceedings. The obligation to return deposits is absolute and must be honored, with assets held in trust for the estate until legal succession is determined - protecting depositors’ rights regardless of the deceased’s estate complexities.