TMI Blog2017 (8) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 441(1) of the Act, this Tribunal has got power to compound the violation of Section 177(1) of the Act, only in respect of the Company, but not to its Officers, i.e., Petitioner Nos. 2 and 3. The Petitioner Company has constituted an Audit Committee and therefore the requirement is complied with after the due date. It is stated in the Report of the Registrar of Companies that the Company is not included in the list of vanishing companies and no similar offence under Section 177(1) of the Act was compounded by the Company during the last three years. Considering the minimum amount of fine provided, this Tribunal is of the considered view that the first Petitioner can be permitted to compound the violation under Section 177(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpanies as may be prescribed shall constitute an Audit Committee. 3.1 Rule 6 of Companies (Meetings of Board and its Powers) Rules, 2014, says the following classes of Companies shall constitute an Audit Committee; (i) all public companies with a paid up capital of ten crore rupees of more; (ii) all public companies having turnover of one hundred crore rupees or more; (iii) all public companies, having in aggregate, outstanding loans or borrowings or debentures or deposits exceeding fifty crore rupees or more. The Proviso to Rule 6 says, that public companies covered by Rule 6 which were not required to constitute Audit Committee under Section 292A of the Companies Act, 1956 shall constitute their Audit Committee within one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions 177 and 178 of the Act. The punishment provided is, the Company shall be punishable with fine which shall be one lakh rupees but which may extend to five lakh rupees; and every officer of the Company who is in default shall be punishable with imprisonment which may extend to one year or with fine which shall not be less than twenty five thousand rupees but which may extend to one lakh rupees, or with both. section 178 of the Act came into force with effect from 1.4.2014. Section 441 of the Act came into force with effect from 1.6.2016. The period of default is during the financial year 31.3.2015. Section 177 of the Act came into force with effect from 1.4.2014 and, therefore, in this case this Tribunal has to follow the procedure l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed with after the due date. It is stated in the Report of the Registrar of Companies that the Company is not included in the list of vanishing companies and no similar offence under Section 177(1) of the Act was compounded by the Company during the last three years. 10. Considering the above said facts, and considering the minimum amount of fine provided, this Tribunal is of the considered view that the first Petitioner can be permitted to compound the violation under Section 177(1) of the Act by paying a compounding fee of ₹ 1,00,000 (One Lakh). 11. This Tribunal further order, that it has no power to compound the offence under section 177(1) of the Act punishable under section 178(8) of the Act in respect of Petitioner No. 2 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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