Ipcc company law :- diff. btwn public deposits and debenture

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Desai Makarand M. (Querist)
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02 January 2015 Can anyone pls clear me what is the actual difference between Public Deposits and Debenture in case of Company ???

vignesh

vignesh (Expert)
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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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