IN RE Vs. APC CREDIT RATING P LTD

JUDGEMENT

(1.) An application for review of order dated September 26, 2016--(APC Credit Rating P. Ltd., (No. 1), In re [2017] 205 Comp Cas 487 (NCLT)) passed by this Bench in C.A. No. 102 of 2016 is prayed for under rule 154 of the National Company Law Tribunal Rules, 2016. The petitioners had filed an application under section 621A of the Companies Act, 1956, for compounding of the default under section 220, which enjoins the company and its directors to file the balance-sheet and the profit and loss statement with the office of the Registrar of Companies within 30 days of holding the annual general meeting. As per averments, the annual general meeting was held on September 30, 2013 and the company and its officers were required to file Form 23AC and 23ACA within 30 days. Necessary compliance was however done on November 21, 2015 after a delay of 750 days.

(2.) Keeping in view, the submissions made by the applicants, as well as the fact that there was no legal impediment in granting their prayer, this Bench had considered the prayer made and compounded the offence. While the Registrar of Companies has recommended imposition of a fine of Rs. 3,75,000/- on each applicant, this Bench had deemed it just, fit and proper to compound offence by the company and its two directors with a compounding fee of Rs. 1,25,000/- each, considering that the default had continued for a period of 2 years.

(3.) Vide the present application learned counsel for the applicants has prayed for review of the said order impugning the decision to impose the compounding fee at Rs. 1,25,000/- on each of the applicants. It is his submission that the fine imposed is harsh and not in keeping with the financial condition of the company and therefore unwarranted and unjustified.