08 October 2009
A Ltd has taken Security Deposit of Rs. 50000/- (Rs. 1000/- in cash and Rs. 49000/- by DD) in Previous Year 2008-09 from Mr. Ramlal. Now on 10th Aug 09, A Ltd is further going to take Security Deposit of Rs. 17500/- in cash from Mr. Ramlal. My query is – Whether Company is violating Sec. 269SS or not? Kindly explain me in detail.
In my opinion it would violate 269 SS as new deposit of Rs. 17500 and previous balance of Rs. 50000 i.e. aggregate amount clause (a)and clause(b) exceeds Rs. 20,000.
"269SS. No person shall, after the 30th day of June, 1984, take or accept from any other person (hereafter in this section referred to as the depositor), any loan or deposit otherwise than by an account payee cheque or account payee bank draft if,—
(a) the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or
(b) on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid ; or
(c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b),
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