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2017 (5) TMI 493 - Tri - Companies LawCompounding of offence for the violation of Section 309(5B) of the Companies Act, 1956 - company had not obtained approval for initial appointment under Section 269 read with clause (e) of Part I to Schedule XIII of the Act - Held that:- Sub-section (9) of Section 269 says that the Tribunal may terminate the appointment if it is in contravention of requirements of Schedule XIII. Sub-section (10) of Section 269 says that the Tribunal may, while passing an order declaring there is contravention of requirements of Schedule XIII, pass an order imposing fine on the company and its officers. Therefore, this Tribunal is given power under Section 269(9) of the Act to declare that there is contravention of requirements of Schedule XIII and to impose fine on the company and its officers. Further, sub-section (11) says that, if the company contravenes the orders passed by the Tribunal under sub-section (10) of Section 269, the company and its officers shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to pay a fine which may extend to 500 rupees. Unless and until a reference is made to the Tribunal, unless and until the Tribunal declares contravention of requirements of Schedule XIII and unless and until the Tribunal proposed to imposes fine as contemplated under sub-section (10), there is no cause of action for the petitioners to invoke Section 621A of the Act. The Registrar of Companies in his report also stated that the application does not appear proper. In view of the above discussion, it is held that the petitioners cannot seek compounding of violation of Section 309(5B) before this Tribunal under Section 621A of the Act.
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