TaxTMI 
TaxTMI 
2016 (12) TMI 1426
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....and Telangana, the case is transferred to the Hyderabad Bench of NCLT. Hence, we have taken the case on records of NCLT, Hyderabad Bench and deciding the case. 2. This is an Application filed under Section 297 read with Section 621A of the Companies Act, 1956 by seeking a direction to permit the Applicants to compound the offence committed under the said Act and also praying to take a lenient view of the technical contravention occurred by them. 3. The brief facts of the case as averred in the application and are material to decide the issue in question are as follows: a. Sreepathi Pharmaceuticals Limited was incorporated on 29.12.1983 vide CIN: U24239AP1983PLC004356 as a private limited company under the Companies Act, 1956 and la....
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....oans 73,253 White Star Alums Pvt Ltd Parent Company 3 2010-11 Purchases 4,41,072 White Star Industries Common Management 4 2011-12 Purchases 5,68,772 White Star Industries Common Management 5 2011-12 Commission 2,47,82,576 Sreepathi Life Sciences Common Management 6 2012-13 Purchases 5,69,825 White Star Industries Common Management 7 2012-13 Commission 2,61,59,242 Sreepathi Life Sciences Common Management 8 2012-13 Interest on unsecured loans 17,65,534 Loan from Directors Srinivas Isola 9 2013-14 Purchases 5,94,600 White Star Industries Common Management 10 2013-14 Commission 1,73,80,839 Sreep....
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....r the director, relative, firm, partner or private company, as the case may be, regularly trades or does business: Provided that such contract or contracts do not relate to goods and materials the value of which, or services the cost which, exceeds five thousand rupees in the aggregate in any year comprised in the period of the contract or contracts; c. in the case of a banking or insurance company any transaction in the ordinary course of business of such company with any director, relative, firm, partner or private company as aforesaid. 3. Notwithstanding anything contained in sub- sections (1) and (2), a director, relative, firm, partner or private company as aforesaid may, in circumstances of urgent necessity, enter, without....
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....t is submitted that though the Directors were interested in the transactions carried out between the Applicant Company and the Related Parties; but the transactions have been made at prevailing market prices and they are not prejudicial to the interest of the Applicant Company or its members. i. It is further submitted that though it is a public limited Company but majority shareholding are with the promoters of the Company, therefore such act of the Company have not caused any harm neither to the members nor to the public at large. j. The Applicant Company submits that the Application is filed suo-motu under Section 621 A of the Act for the compounding of default committed under Section 297 of the Companies Act, 1956. ....
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.... and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which the contravention continues. 8. In the light of the above facts of the case, it is not in dispute that there is a continuous violation of Section 297 of the Companies Act, 1956 by the Applicants from financial years 2009-2014. Upon perusal of the related party transactions as provided in the Application from the Financial Years 2009 to 2014, we have identified certain transactions having huge financial implications. The total amount of Purchases made through the Financial Years 2009-14 is approximately Rs. 27.61 lakhs while the total Commission paid amounts approximately to Rs. 6.8 Crore....