2019 (3) ABR(Cri) 531 ::AIROnline 2019 Bom 913 ::(2019) 4 BomCR(Cri) 496 ::(2020) 1 Mh LJ (Cri) 639

Bombay High Court

Hon'ble Judge(s): Ranjit More, N. J. Jamadar , JJ

Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act (16 of 2000) , S.2(c), S.3— Companies Act (18 of 2013) , S.73— Companies (Acceptance of Deposits) Rules (2014) , R.2(1)(d)— Inter-corporate deposits - Loan advanced or deposits made by a company with another company - Would not amount to deposits within meaning of and for purpose of Act (16 of 2000) - Do not fall within scope and ambit of Act (16 of 2000). The inter corporate deposit/loan, i.e., a loan advanced / deposit made by a company with another company registered under the provisions of the Companies Act would not amount to a "deposit" within the meaning and for the purpose of the MPID Act. the persuasive compulsion of an irresistible offer does not lead to a blindfold investment by one company in another company. Nor a company is afflicted by the same degree of lack of information which an individual depositor may have to suffer. The company, which operates in a fiercely competitive financial market, is supposed to be equipped to make a prudent business decision. Viewed through this prism, and in the backdrop of the object of the enactments, including the MPID Act,, it does not appear that the object of the MPID Act was to protect the interest of the corporate depositors with the same zeal as that of the common citizens, unsuspecting investors and small depositors.(Par....