2017 (8) TMI 508

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....d Public Company under Section 2(71) of the Companies Act, 2013 with effect from 23.8.2014. 3. Section 177(1) of the Companies Act, 2013 (hereinafter referred to as "the Act"), which came into force with effect from 1.4.2014, lays down that the Board of Directors of every listed Company and such other class or classes of companies as may be prescribed shall constitute an Audit Committee. 3.1 Rule 6 of Companies (Meetings of Board and its Powers) Rules, 2014, says the following classes of Companies shall constitute an Audit Committee; (i) all public companies with a paid up capital of ten crore rupees of more; (ii) all public companies having turnover of one hundred crore rupees or more; (iii) all public companies, having in aggregat....

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.... the Application on 14.9.2016 before the Registrar of Companies. The Registrar of Companies forwarded the Application along with his Report dated 20th December, 2016. The Registry of this Tribunal registered the same as 'CP No. 5 of 2017'. 6. Section 178(8) of the Act provides punishment for contravention of sections 177 and 178 of the Act. The punishment provided is, "the Company shall be punishable with fine which shall be one lakh rupees but which may extend to five lakh rupees; and every officer of the Company who is in default shall be punishable with imprisonment which may extend to one year or with fine which shall not be less than twenty five thousand rupees but which may extend to one lakh rupees, or with both." section 178 of the....

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.... got power to compound the violation of Section 177(1) of the Act, only in respect of the Company, but not to its Officers, i.e., Petitioner Nos. 2 and 3. 9. As can be seen from the averments in the Petition, the Petitioner Company has constituted an Audit Committee and therefore the requirement is complied with after the due date. It is stated in the Report of the Registrar of Companies that the Company is not included in the list of vanishing companies and no similar offence under Section 177(1) of the Act was compounded by the Company during the last three years. 10. Considering the above said facts, and considering the minimum amount of fine provided, this Tribunal is of the considered view that the first Petitioner can be permitted t....