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TMI Blog2021 (7) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... aring for the Applicants submitted that the Registered Office of the Applicant No. 1 Company is presently situated at Flat No. 102, Utraula Complex, 27/6, Raja Ram Mohan Rai Marg, 3, Way Road, Lucknow - 226001 (U.P.), therefore, the present Application falls within the jurisdiction of this Tribunal. 3. It is submitted that Authorised Share Capital of the Applicant No. 1 Company is Rs. 10,00,00,000/- divided into 1,00,00,000 Equity Shares of Rs. 10/- each and its Issued, Subscribed and Paid-up Share Capital is Rs. 2,88,20,110/- divided into 28,82,011 Equity Shares of Rs. 10/- each. 4. The Central Government vide Order No. 52/26/CAB/2010 dated 30th June, 2011 directed the Applicant No. 1 Company for Audit of Cost Records and filing of Cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Cost Audit Reports in the prescribed Form No. 1-XBRL with the Central Government under the provisions of Section 233 B of the Companies Act, 1956 read with the Companies (Cost Audit Report) Rules, 2011 for the Financial year 2013-14 and filed the present Application for compounding of offence contending that the default was unintentional and occurred for technical reasons beyond reasonable control of the Applicants. 9. It is stated that the Applicant No. 1 Company is a closely held Public Limited Company and offence is not of such a nature that it causes prejudice to the interests of members, creditors and other stakeholders of the Company. 10. It is further stated by the Applicants that no inspection or investigation proceedings under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B of the Companies Act, 1956. The default is punishable under sub-section 11 of Section 233B of the Companies Act, 1950 according to which the Company is punishable with fine which may extend to five thousand rupees and every officer of the Company who is in default is liable to be punished with imprisonment for a term which may extend to three years or with fine which may extend to fifty thousand rupees or with both, therefore, the offence not being an offence punishable with imprisonment only or imprisonment and with fine is compoundable under Section 441 of the Companies Act, 2013 16. The Learned PCS appearing for the Applicants further submitted that Section 233B(11) of the Companies Act, 1956 provides punishment of fine only to the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hable with fine not exceeding twenty-five lakh rupees in case of company, it could be compounded by the Tribunal. 19. Coming to the case of the Second and the Third Applicants namely; the Managing Director and Whole-time Director of the First Applicant Company, punishment provided is imprisonment or fine or with both. Where imprisonment is provided, the Regional Director has no jurisdiction to compound it irrespective of fine amount, therefore, in respect of Second and Third Applicants, this Tribunal has got jurisdiction to compound the offence. 20. In the above said judgment of the Hon'ble NCLAT, it is also held that the Joint Application by Company and its officers in default is maintainable. 21. Learned PCS appearing for the Appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng upon the aforesaid two judgments of the Hon'ble NCLAT and the amended Section 441(6) of Companies Act, 2013. 25. The Applicants have filed this application for compounding of offence explaining that the delay was due to technical problems in MCA Portal and was not with any mala fide intention or any willful negligence on the part of the Applicants and the Applicants have already taken reasonable steps to ensure that the default is not committed in future, therefore, there appears to be no legal impediment in compounding this offence and the Applicants prayer can be granted. 26. The Tribunal being the Adjudicating Authority hereby compounds the said offence under Section 233B of the Companies Act, 1956 for the Financial year 2013-14 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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