Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2019 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 192 - HC - Companies LawAllotment of sharers made by the respondent on preferential basis - Failure on the part of the respondent to comply with requirement of SEBI Act and Regulations - offences under Sections 81(1), 75 and 150 of the Companies Act, 1956 - Composition/Compounding of offences - Two orders have been passed by the SEBI are on account of certain violation under the Companies Act, 1956 and therefore, the respondents wanted to compound the offences by paying composition. HELD THAT:- The respondents have settled disputes under the Companies Act, 1956 alone. By settling the dispute under Section 621-A of the said Act, the machinery provided to the appellant under the SEBI Act, 1992 to prosecute respondents for any violation of the said Act and regulations made thereof has not been stifled in any manner. From the reading of the provisions of Section 621-A of the companies Act, 1956, it is clear that compounding of offence by payment of composition fee before the Company Law Board as it stood under the provisions of the erstwhile Companies Act, 1956 read with Section 629-A was confined to any offence punishable under the Companies Act, 1956. The power of compounding of offences by the Company Law Board under Section 621-A of the Companies Act, 1956 as it stood could be exercised only in relation to any offences punishable under the said Act either before or after the institution of any prosecution - Composition of offences under the provisions of the aforesaid Act did not in any manner preclude the appellant from initiating any proceedings for alleged violations under the SEBI Act, 1992 or the regulations made. Therefore, attempt of the respondents to settle the dispute qua the Companies Act, 1956 did not come in the legitimate way of the appellant from initiating any criminal proceedings against the respondents. There are no merits in the appeals - appeal dismissed.
|