NCLT ORDERS TO PAY A COMPOUNDING FEE OF Rs 2,00,000 BY M/s MVM Metal and Alloys Pvt Ltd FOR FILING OF ILLEGIBLE ACCOUNTS WITH THE ROC
Case: M/s MVM Metal and Alloys Pvt Ltd
Company filed financial statements for 2011-12 which were not legible, NCLT compounded the offence on payment of fine of Rs. 50,000 each on the Directors and on the Company totalling Rs. 2,00,000.
Facts: The attached financials which were filed by the Company for the Financial Year 2011-12 in e form were not legible and therefore were not accepted by the ROC and hence the same were not taken on record, thus attracted the violation of Section 162 of the Companies Act, 1956.
Thereafter, the Directors of the Company filed the same in year 2013 and the ROC took the date of filing the hard copy as the date of Compliance and accordingly the Compounding fees was recommended by the ROC to NCLT for the levy of Compounding Fees up to the date of filing of filing of those Financials.
What the Company Act 1956 Says
Section 162 of the Companies Act, 1956 says: If a company fails to comply with any of the provisions contained in section 159, 160 or 161, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to Rs. 500 for every day during which the default continues.
NCLT is more powerful than CLB
It is time for the company secretaries in employment to know that Registrar is having more power under Companies Act ,2013 and ROC is now initiating those company’s which are not adhering the CA 2013 provisions in letter and spirit. Now , to safeguard the directors of the company for having committed an offence under CA 2013 and paying a compounding fee , Company secretaries are to be more vigil to see that annexures to accounts are legible and readable which is filed with the Registrar of Companies.