IN RE Vs. WELSPUN PROJECT LTD

JUDGEMENT

(1.) This petition is filed by M/s. Welspun Enterprises Limited (Formerly known as Welspun Projects Ltd.), its Chairman, Directors and Company Secretary seeking compounding of offence under Section 621A of the Companies Act, 1956 for the violation of Section 307(1) of the Companies Act, 1956 (hereinafter referred to as "the Act" for short) punishable under section 307(8) of the Act. As per the provisions of Section 307(1) of the Act, every company shall keep a register showing as regards each director of the company, the number, description and amount of any shares in or debentures of the company or any other body corporate, being the company's subsidiary or holding company, which are held by him or in trust for him or of which he has any right to become the holder whether on payment or not. But the Register of directors' shareholding does not disclose the complete particulars as required under section 307 of the Act. According to the report of the Registrar of Companies, this violation was committed during the years 2001 to 2008.

(2.) The petitioners, admitting the violation, filed an application before the Registrar of Companies on 25th March, 2010. The said application was forwarded by the Registrar of Companies to the Company Law Board, Mumbai vide its report dated 22nd October, 2012. Thereafter, additional report dated 13.05.2013 was forwarded to the Company Law Board. Subsequently, the matter was transferred to this Tribunal and it is renumbered as T.P. No. 149 of 2016. Thereafter, the Registrar of Companies, in the month of December 2016, forwarded a copy of additional information in Annexure 'A' along with letter dated 13.05.2013 with the signature of the Deputy Registrar of Companies.

(3.) Section 307(8) of the Act provides fine which may extend to fifty thousand rupees and with a further fine which may extend to 200 rupees for every day during which the default continues.