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M/s. KOG - KTV Food products (India) Pvt. Ltd. & Others v/s The Registrar of Companies, Chennai

    CA No. 618 of 2019

    Decided On, 25 July 2019

    At, National Company Law Tribunal Chennai

    By, THE HONOURABLE MR. CH. MOHD SHARIEF TARIQ
    By, JUDICIAL MEMBER

    For the Appearing Parties: G. Sreenivasa Rao, PCS, B. Sarathbabu, Counsel.



Judgment Text

1. Under consideration is an Application No. CA/618/2019 which has been filed by the Applicants before this Tribunal, under Section 441 of the Companies Act, 2013, for compounding of the offence committed under Section 233B of the Companies Act, 1956. The Deputy Registrar of Companies has forwarded a Report on the Application, stating therein that it is the first offence and has also pointed out that a Prosecution (EOCC No. 17 and 18 of 2017) against

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the Applicant Company is pending before the Addl. Chief Metropolitan Magistrate Court, Egmore, Chennai.

2. The First Applicant is the Company and the other two applicants viz. Mr. K.T.V. Narayanan and Dr. I. Ashok, are its Officers in default, who have filed E-form No. GNL - 1 vide SRN: G46401212 dated 19.06.2017 for violation of the provisions of Section 233B of the Companies Act, 1956.

3. The offence arose when the Applicants herein have failed to file the Cost Audit Report of the Company for the Financial year 2012 - 2013 as mandated under provisions of Section 233B (4) of the Companies Act, 1956 read with the Companies (Cost Audit Report) Rules, 2011.

4. It has been stated that the Company has appointed the third applicant viz. Dr. I. Ashok, as the Cost Accountant for conducting audit of cost records of the Company for the Financial Year 2012-2013 and the requisite Form 23- C, for appointment of Cost Auditor has also been filed with the Central Government. In pursuance of the same, the Cost Accountant has submitted his Cost Audit Report to the Board of Directors on 02.09.2013 and the same was approved. Thereafter, the Company has failed to file the Form I-XBRL with the Central Government within 30 days of the receipt of the Cost Audit Report, as mandated under Section 233B(7) of the Companies Act, 1956.

5. As per the report submitted by the Registrar of Companies, the Applicants received show cause notice from the Cost Audit Branch, Ministry of Corporate Affairs, New Delhi vide show cause dated 30.04.2015 and 06.10.2015 for non-filing of the Cost Audit Report for the Financial Year ended 31.03.2013, within the prescribed time limit. It has been further stated in the RoC Report that the offence was made good and the Company has complied with the provisions of Section 233B of the Companies Act, 1956 by filing the cost audit report belatedly in Form I - XBRL vide SRN: S44618577 dated 30.12.2015.

6. In view of the above, the Applicant company and its Officers were found to have violated the provisions of Section 233B (6) read with Rule 4 (3) & (6) of the relevant rules thereunder. Accordingly, RoC, Chennai has filed a prosecution EOCC No. 17 and 18 of 2017 before the Ld. Addl. Chief Metropolitan Magistrate Court, Egmore, Chennai, for the violation of Section 233B (7) of the Companies Act, 1956 and the same is pending.

7. The Applicants pleaded for imposing nominal penally on the ground that this is the first offence and the same has been made good, which has been confirmed by the concerned RoC. Therefore, the Application of the Company and its Officers in default is allowed and the offence(s) committed under Section 233B of the Companies Act, 1956 for the Financial Year 2012 - 2013 is compounded in exercise of the powers conferred under Section 441 of the Companies Act, 2013, by imposing fine under Section 233B (11) of the Companies Act, 1956 to the tune of Rs. 25,000/- (Rupees Twenty Five Thousand Only) i.e. Rs. 5,000/- on the First Applicant Company and Rs. 10,000/- each on the Second and Third applicants. The Company is directed to pay the penalty from its accounts but the officers in default shall pay the penalty from their own resources. The Applicants shall comply with the Order within three weeks from the date of passing this order. The Company is directed to file a copy of this Order along with the required Form with the Registrar of Companies, Chennai, within the as time prescribed.

8. Since the prosecution is pending before Ld. Addl. Metropolitan Magistrate Court, Egmore, Chennai, the RoC is directed to submit the copy of this order before the Ld. Addl. Metropolitan Magistrate Court, Egmore, Chennai, with an application, praying therein to seek the order of discharge of the Applicants / Accuseds' from the said prosecution.

9. Accordingly, the Application stands disposed of.

10. The certified copy of this Order may be issued to the Applicants after the amount of fine is deposited as per the procedure prescribed
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