IN RE Vs. HARMANDEEP SINGH KANDHARI

JUDGEMENT

(1.) The petitioner Mr. Haramdeep Singh Kandhari, was a Director in more than 20 Companies. This is in gross violation of Section 165 of the Companies Act 2013 which limits any individual from being a Director in more than 20 companies. On realization, The applicant has taken suo moto steps to resign from the directorship of some companies so as to adhere to the provisions of Section 165. As per the said provision, every any person who was on the Board of directors of more than 20 Companies was required to resign from companies in excess of twenty by 31st March 2015. The period of default is therefore stated to be from 01.04,2015 to 01.10.2015 i.e for 183 days.

(2.) With a view not to face a protracted criminal prosecution and penal consequences, the applicant who admits this default on account of ignorance, has filed the present petition under section 441 of the Act.

(3.) The offence is punishable u/s 165(6) of the Companies Act, 2013 which . provides for an imposition of a fine which shall not be less than Rs.5,000/- but which may extend to Rs.25,000/- for every day after the first during which the contravention continues. Accordingly the office of the RoC has recommended the imposition of a fine of Rs. 4575,000/-(Max.) on the petitioner.