TOPIC 43: QUICK REFERENCE TO “Compounding of Offence under Companies Act, 2013”

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Quick Reference to "Compounding of Offence under Companies Act, 2013" :-
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Legal Provision:-.
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Section 441 of Companies Act, 2013.
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Points:-
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1. Basically, Compounding of Offence means Amicable settlement of Dispute.
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2. It is applicable for Offence punishable with fine only,
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3. An offense punishable with imprisonment only or imprisonment and fine is not compoundable.
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4. Jurisdiction:-
# Amount of fine more than ₹ 5 lakh ;- NCLT
# Amount of fine upto ₹ 5 lakh ;- Regional Director.
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5. Compounding is not allowed if investigation with company is already going on.
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6. Same offence is not Compoundable within a period of 3 years.
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7. Compounding order should be filed with ROC in form INC-28.
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8. No prosecution is instituted if offence is compounded.
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9. An offence punishable with imprisonment or fine, imprisonment or fine or both shall be Compoundable with the permission of Special Court.
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REGARDS
ACA SOURAV BAGARIA