02 January 2015
The person making the deposit has no right to call back the deposit; The deposit does not become a debt until the period for which the money is deposited expires and As a consequence the creditor has no right to recover the money before the deposit period concludes. After considering the above facts we can distinguish loan from the deposit as: The person lending the loan can demand the same at any time. The amount of loan is treated as a liability from the time it is accepted. Lender can recover the money of loan without expiry of any specified period as in case of deposit. Clause 2 (31) in companies bill: “deposit” includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India; Hence under the Companies Bill, the term specifically includes the “loan” hence clarifying the earlier confusions between the two terms
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