TMI Blog2016 (10) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... ompound the violation as mentioned above by paying the compounding fee. We direct the 14 applicants to pay ₹ 50,000/- (Rupees Fifty Thousand only) each and deposit the same with the authorities within two weeks. Further we also direct the applicants to ensure compliance of Section 295 within four weeks from the date of receipt of the Order and report the compliance. - C.A.NO. 17/HDB/2016 - - - Dated:- 26-8-2016 - Mr. RAJESHWARA RAO VITTANALA AND Mr. RAVIKUMAR DURAISAMY, JJ. For The Applicant : Sri S. Chidambaram ORDER (As per Rajeswara Rao Vittanala, Member(J)) The application was initially filed before Company Law Board, Chennai Bench, Chennai. Since, NCLT, Hyderabad Bench has been constituted for the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral security without obtaining the approval of the Central Government, to the following companies, in which the directors of the applicant company are also directors/members and to the firms in which either directors of the Applicant No. 1 Company or their relatives are partners. S. No Period/Date of violation Names of the parties Particulars of transactions 1 24.08.2009 1. Arvind Seeds Private Limited Provided collateral security for the loans by the parties 2. Sri Sai Swarupa Seeds Private Ltd 2 12.05.2010 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 30.11.2012 1. Sri Lakshmi Poultry Complex, Hospet Provided collateral security for the loans by the parties 2. Padmaja Farms 10 2012-13 Padmaja Farms Given Advance to the relative of a Director 11 26.02.2014 Provided collateral security for the loans by the parties As per section 295 of the Companies Act, 1956, no company can directly or indirectly make any loan to or giving guarantee or provide any security in connection with a loan made by any other person, without obtaining previ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the loan in respect of which guarantee is given or the security is provided, shall be punishable either with fine which may extend to ₹ 50,000/- or with simple imprisonment for a term which may extend to 6 months. It is further stated that the applicants have committed the said violation without any mala fide intention, wilful or wanton. It is further contented that the above violation did not cause any prejudice to any of the shareholders or any other stakeholders. They also contend by accepting the violation as mentioned above and voluntarily approaching this Tribunal for compounding under section 621A r/w 295 of the Companies Act, 1956. 5. Heard Sh. S. Chidambaram, Practicing Company Secretary and also perused the proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the Tribunal under the Companies Act in permitting the applicants to compound the violations in question. THIS BENCH DOTH ORDER In view of the above facts and circumstances of the case and in the interest of justice, we are inclined to permit the applicants to compound the violation as mentioned above by paying the compounding fee. We direct the 14 applicants to pay ₹ 50,000/- (Rupees Fifty Thousand only) each and deposit the same with the authorities within two weeks. Further we also direct the applicants to ensure compliance of Section 295 within four weeks from the date of receipt of the Order and report the compliance. The applicants are warned to be careful in the future and if such conduct is ever repeated, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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