M/S Shree Shrine Engineering & ... vs Registrar Of Companies, Gujrat, ...

18.04.2017 -- The Appellant has challenged order dated 9* February 2017 passed by the Na Jona) Company Law Tribunal, Anmedabad Bench, Ahmedabad fhereinafter referred..to. as Tribunal) im T.P, No. L7G /621A/NCI -T/Abm/ 2016 new). --

By the in npugned carder, the 'Tribunal cor ypounded the offence on payment af compounding - fee and fine, total of which comes to Rs.3,96,000/- {Rupees three lakh ninety six thousand only}.

We have heard the Ld. Counsel of the Appellant and perused the record. Admittedly the company and its directors violated the provisions of Section 166 of the Companies Act, 1956 and defaulted from Qe September 2014 to 29% December 2014 by not halding the Anrual General Meeting for the financial year 2013- 14, which was to be held on ar before SO% September 2014. In a petition preferred b y the Appellant under Section 621-A of the Companions Act, 1956, by a detailed reasoned order, the Tribunal compounded the offence {sg}, relevant portion of which is quoted below:-

"9 Considering the facts and circumstances of the cause, Hus Tribund is af the niew that the sald company as well as is three directors shall pay a compounding fee of Ns. 10,000/- and pay a fine of Bs. 1G00/- each for every day's default, fer a total period af &9 days Le.. fron: 2" September, 201 4 ta 29 December, 2014. The compounding fee, that Rae to be paid by the said conpany and is three directors, shall be aa foilous:-

Rs. 30,000 x ¢ (Pentianers} : Rs. 40,000 Rs. 1000 x 4x &9 days : Rs. 3, 56, 000

Troted

10. Hence, following the procedure, as contemplated under Section 621-4 of the Campanies Aci, the offence comunitted under Section 96 of the Companies Aci, 2613, by the said company, namely Shree Shrine Engineering & Marketing Cs. Put, Lick, and three Directors of the surd company, namely {2} Mr Ashok Kumar, (2) Mrs Smriti Srivastava and Mr Amit Kumar, is compounded by this Tribunal on payment of Rs.3, 96, 00G/- by wey of demand draft drawn on a nationalized bank in favour of Pay and Accounts Offiver, Ministry of Corporate Affairs, Mumbai, within three weeks from the date of fius order and the said demand drajt shall he Aled before the Registry of Gus Tribunal on or before I° March, S014"

cribes penalty for fthe Compares Act, 1956 wherein punishment with fine which may extend to ity thousand rupees and in the case of a continuing delauit, with a further fine which may extend to two thousand five hundred rupees for every day after the first during which such default contitvuecs. With regard to rupees fifty thousand, the Ld. Tribunal has compounded it to rupees ten thousand for each of the director and for continuing default inatead of rupees two thousand five bundr wubeen compounded to rupess one thousand per day per director. :

Section 1@8 of the Companies Act, 1956 3 default in complying with Section 166 or Section 16"

»

in view of such compounding and in the absence of any Ulegalily in he impugned ordér dateri 9 Pebruary 2017, we are not inclined to interfere with the same. We find no merit in this appeal. The appeal is : seed. There shall be no order as to cast.

aocarding

iJustice S.J. Mukhopadhaya} Chairperson

(Mr. Balvinder Singh} Member (Technical