Q&A

If offence is committed under companies act 1956 then compounding of offence is done under Companies Act 1956 or under the new Companies Act, 2013?
By -Neti Jhatakia 08 Nov 2016


For offence pertaining to the Companies Act, 1956 an application for Compounding would need to be made to the appropriate Compounding Authority (NCLT/ RD/ Adjudicating officer) referring to the defaults made under the provisions of the Companies Act, 1956, the period of default, involvement of directors/ officers and the fact that the default has been made good and is not a continuing default. The provisions of section 441 of the Companies Act 2013 relating to the compounding of offences has been made applicable from June 1, 2016 therefore ideally the Compounding application would be under section 441 r/w corresponding provisions of section 621A of the Companies Act, 1956. It is advisable that Compounding Application be filed after discussion on the reply submitted by the Company with the concerned ROC officer.