TaxTMI 
TaxTMI 
2017 (5) TMI 994
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....udge on an appeal filed by the petitioner in Crl. M.C. No. 399/2017, that is, Instrumentation Laboratory India Pvt. Ltd. (hereinafter 'the company') against the order dated 19th April, 2016 passed by the learned ACMM compounding the offence punishable under 162 for contravention of Section 159 of the Companies Act, 1956. Grievance of the petitioners is that though the compounding fees was reduced from Rs. 15,00,000/- each as imposed by the learned ACMM to Rs. 8,00,000/- each, however, still the same was on the higher side. 2. The facts leading to the filing of the present petitions are that a complaint was filed under Section 162 read with Section 159 of the Companies Act, 1956 was filed by the respondent No.2 i.e. Registrar of Companies, ....
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....and Suresh Kumar Chauhan. 5. Learned counsel for the petitioners and respondents inform that Mr. Jordi Preixens Forte the other accused being accused No.2 in the complaint has since passed away, so the complaint was proceeding only against the company and Suresh Kumar Chauhan. 6. As noted above on a calculation of Rs. 500/- per day delay in filing the annual return and the balance sheet, the composition amount required to be paid by the company and its Director was approximately Rs. 61,00,000/- however, the learned Trial Court fixed the same at Rs. 15,00,000/- which would amount to a composition fee approximately of Rs. 125/- per day delay which has been further reduced by the learned Additional Session Judge to Rs. 8,00,000/- which would....
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....ssive. The concept of proportionality allows a significant discretion to the Judge but the same has to be guided by certain principles. In certain cases, the nature of culpability, the antecedents of the accused, the factum of age, the potentiality of the convict to become a criminal in future, capability of his reformation and to lead an acceptable life in the prevalent milieu, the effect - propensity to become a social threat or nuisance, and sometimes lapse of time in the commission of the crime and his conduct in the interregnum bearing in mind the nature of the offence, the relationship between the parties and attractability of the doctrine of bringing the convict to the value-based social mainstream may be the guiding factors. Needles....
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....lity is concerned, there is no gainsaying that the said doctrine has not only arrived in our legal system but has come to stay. With the rapid growth of administrative law and the need and necessity to control possible abuse of discretionary powers by various administrative authorities, certain principles have been evolved by courts. If an action taken by any authority is contrary to law, improper, irrational or otherwise unreasonable, a court of law can interfere with such action by exercising power of judicial review. One of such modes of exercising power, known to law is the "doctrine of proportionality". 18. "Proportionality" is a principle where the court is concerned with the process, method or manner in which the decision-maker has ....
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....n English law; lack of proportionality is not usually treated as a separate ground for review in English law, but is regarded as one indication of manifest unreasonableness." 21. The doctrine has its genesis in the field of administrative law. The Government and its departments, in administering the affairs of the country, are expected to honour their statements of policy or intention and treat the citizens with full personal consideration without abuse of discretion. There can be no "pick and choose", selective applicability of the government norms or unfairness, arbitrariness or unreasonableness. It is not permissible to use a "sledgehammer to crack a nut". As has been said many a time; "where paring knife suffices, battle axe is preclud....