(1) Where it is found that a company has accepted or invited or allowed or caused any other person to accept or invite on its behalf any deposit in contravention of the manner or the conditions prescribed under section 73 or rules made thereunder or if a company fails to repay the deposit or part thereof or any interest due thereon within the time specified under section 74 or such further time as may be allowed by the Tribunal under that section, and it is proved that such deposits had been accepted with intent to defraud the depositors or for any fraudulent purpose, every officer of the company who was responsible for the acceptance of such deposit shall, without prejudice to the provisions contained in sub-section (3) of section 74 and liability under section 447, be personally responsible, without any limitation of liability, for all or any of the losses or damages that may have been incurred by the depositors.

(2) Any suit, proceedings or other action may be taken by any person, group of persons or any association of persons who had incurred any loss as a result of the default of the company in making repayment of deposit or part thereof or any interest thereon as required under this Chapter.