Concessional penalty for search-disclosed unreconciled jewellery applies where substantive disclosure conditions are met despite omission from origina...
NCLAT determined that failure to file Board Reports for FY 2010-11 and 2013-14 constituted continuing offences under s.220 of Companies Act, 1956. While appellants admitted default in filing with ROC, evidence showed reports were circulated to shareholders timely with no prejudice to stakeholders. Considering the inadvertent nature of omission, self-disclosure by appellant, and comparable precedents, NCLAT modified the penalty structure. The tribunal reduced compounding fees to Rs.50 per day of continuing default for both company and directors, finding original penalty excessive. The appeal succeeded with modified penalties applied under s.220 read with s.162 of Companies Act, 1956.
NCLAT determined that failure to file Board Reports for FY 2010-11 and 2013-14 constituted continuing offences under s.220 of Companies Act, 1956. While appellants admitted default in filing with ROC, evidence showed reports were circulated to shareholders timely with no prejudice to stakeholders. Considering the inadvertent nature of omission, self-disclosure by appellant, and comparable precedents, NCLAT modified the penalty structure. The tribunal reduced compounding fees to Rs.50 per day of continuing default for both company and directors, finding original penalty excessive. The appeal succeeded with modified penalties applied under s.220 read with s.162 of Companies Act, 1956.
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