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2013 (5) TMI 348 - SC - Companies LawAppeal against CLB for assailing compounding of offences – u/s 211(7) of the Companies Act, 1956 - whether the CLB can compound offence punishable with fine or imprisonment or both without permission of the court? Facts of the case Company had taken a land from New Delhi Municipal Corporation on licence and the Company only pays the yearly licence fee thereof. Thus, according to the complainant, without any right land has been shown as land in the Schedule of fixed assets, which is not a true and fair view and punishable under Section 211(7) of the Companies Act, hereinafter referred to as “the Act”. Before the court in seisin of the case could proceed with the complaint, the Company and its Managing Director jointly filed an application before the CLB for compounding the offence. CLB, by its order dated 9th of August, 2000 acceded to the prayer. Which gives rise to present appeal. Held that:- The power under sub-section (1) and sub-section (7) of Section 621A are parallel powers to be exercised by the CLB or the authorities mentioned therein and prior permission of Court is not necessary for compounding the offence, when power of compounding is exercised by the CLB. Thus, the impugned order cannot be interfered.
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