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The appeals have been preferred against the order dated 31.05.2006 passed by the Company Law Board under Section 634A of the Companies Act, 1956.

2. Originally, many depositors complained to the Company Law Board that the deposits collected by the appellant Company were not returned on maturity along with interest. Therefore, a Scheme of Settlement was arrived at before the Company Law Board by which the deposited amounts along with interest were to be repaid by the appellant Company. Since the deposited amounts along with interest, as per the Scheme of Settlement, approved by the Company Law Board, were not paid, the respondents filed applications under Section 634A of the Companies Act, 1956. On enquiry, the Board found that the Appellant Company did not comply with the Scheme of Settlement approved by the Company Law Board and disposed of the applications observing as hereunder:

4. Though the respondents/claimants have been served with notice and their names also appear in the cause list, no one has entered appearance on their behalf. Therefore, this Court proceeds to decide the matter on merits.

N. KIRUBAKARAN,J.

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5. A perusal of the records would reveal that the claim of the respondents was not settled. Therefore, they approached the Company Law Board under Section 634A of the Companies Act, 1956. Even in paragraph No.3 of the award, it has been stated that the admitted position is that the Company failed to settle the entire amount and thus, not complied with the order of the Company Law Board and that the Company is not disputing the interest amount claimed by the claimants. When such an observation has been made, based on records, that the interest amount was not paid, the appellant is bound to pay the amount. The annexure given along with the order would show that the appellant has to pay a sum of Rs.2,16,884/-. The said amount is required to be paid as per the Scheme of Settlement. Since the amount is due from the date of the order, i.e.,31.05.2006, the same is directed to be paid along with 6% interest per annum.