AI Drafter 
TaxTMI 
TaxTMI 
2016 (10) TMI 1075
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for compounding the offences under Section 297 of the Companies Act, 1956 before the Hyderabad Bench of NCLT, praying the Tribunal to take a lenient view in compounding the offences committed under the Companies Act, 1956. 2. The brief facts of the case as averred in the Application are as follows: a. The Applicant Company is a Company which was incorporated on 16th December, 2002 in the name and style of Deccan Chronicle Holdings Limited under the provisions of the Companies Act, 1956 and registered as a Limited Company with the Registrar of Companies, Hyderabad (ROC) having CIN L22122AP2002PLC040110. b. The present Authorised Share Capital of the Company is Rs. 70,00,00,000/- (Rupees Seventy Crore only) divided into&....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l Government for entering into contract/to carry out any transactions with the Director of the Company or his relatives(s) or a firm in which such Director or his relative is a partner or any other partner in such a firm or a private Company of which the Director is a member or Director. e. The Applicants submitted that the Applicant Company had carried out transactions like obtaining services/made payments from/to M/s Flyington Freighters Private Limited and the Company has transferred fund from time to time to M/s Flyington Freighters Private Limited towards maintenance charges of aircraft of an amount of Rs. 99,45,98,392.03/- during the period 16.10.2007 to 31.03.2011. f. The Applicants submitted that they did not obtai....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... deal was not materialized. Because of these reasons, the Applicant Company had terminated the understanding and therefore called back its money and in compliance of which, Flyington Freighters Private Limited repaid the entire advance of Rs. Rs. 99,45,98,392.03/- h. Subsequently, a show cause notice RAP/209A/DROC (SRD)/CK/DCHL/Sec297/ 2014/ 1148/15 dated 05.08. 2014 was issued by the Deputy Registrar of Companies, Hyderabad for the states of Andhra Pradesh and Telangana. Accordingly, the Applicants stated that they have filed the present application suo-motu for compounding of offence under Section 621A of the Companies act, 1956. i. It is also submitted that the defaults committed by the Applicants are of technical....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or approval of Central Government as required under Section 297(1), although the Paid-up capital of the DCHL is more than Rs. 1 crore. The matter was taken to the DCHL vide letter dated 17.05.2013 but the reply of the Company was not satisfactory. Therefore, the Inspecting Officer opinioned that DCHL and its Board of Directors have violated Section 297(1) and are liable for penal action under Section 629A of the Companies Act, 1956. 5. In the show-cause notice dated 05.08.2014, it was stated that when the matter regarding various violations/issues was taken up with the Company vide letter dated 17.05.2013, the Applicant Company wilfully did not reply to the above issue in their reply dated 04.06.2013. Although there was a rep....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cial impact on the Company which inturn will have an impact on the shareholders directly or indirectly. As generally known, Related Party transactions are gaining importance/prominence since a couple of decades. Related Party transaction may create potential conflict of interest which can result in benefit of the other party than the Company itself or its shareholders and thus which needs to be regulated. 8. The Applicants have submitted a ledger statement for the period of 1st April, 2008 to 31st March, 2012. Upon perusal of the same, it is observed that substantial amount of approx. Rs. 75 crores out ofRs. 99.45 crores advanced was received only in the month of March, 2011. 9. With regards to the averments made in the Ap....