TaxTMI 
TaxTMI 
2019 (5) TMI 827
X X X X Extracts X X X X
X X X X Extracts X X X X
....verments made in the company application are briefly described hereunder : (a) It is averred that the respondent has filed a complaint against the applicants herein under section 134(3)(o) read with section 135 of the Companies Act, 2013, read with the Companies (Corporate Social Respon sibility Policy) Rules, 2014 before the Special Judge for Economic Offences at Hyderabad and same is registered as C. C. No. 296 of 2017. (b) It is averred that under the Companies Act, 2013 certain state ments to be attached under section 134(3)(o) in the directors' report laid before the company in general meeting and the report of the board of directors shall include, inter alia, the details about the policy developed and imple....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the unspent amount of Rs. 19,19,650 to the sub sequent financial years and due to inadequacy of profits the company. (f) It is averred that the company decided to carry forward the unspent amount of Rs. 19,19,650 to the subsequent years. The company in the financial year 2016-17 and 2017-18 has spent the amount carried for warded towards the CSR activities. (g) It is averred that CSR is new provision introduced by the Companies Act, 2013 and hence there was an unintentional delay by the com pany in the constitution of CSR Committee, adoption of CSR policy, spending requisite amount towards CSR obligation and therefore could not comply with the requirements for the financial year 2014-15. 3. The Registrar of Comp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....olicy developed and implemented by the company on corporate social responsibility initiatives taken during the year." 8. Section 135(1) of the Companies Act, 2013 reads as follows : "(1) Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall con stitute a Corporate Social Responsibility Committee of the Board con sisting of three or more directors, out of which at least one director shall be an independent director." 9. Learned counsel for the applicant contended the non-compliance with the provisions of section 134(3)(o) and section 135 of the Companies Act, 2013 was unintentional and se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....posed for such offence does not exceed twenty-five lakhs rupees, by the Regional Director or any officer authorised by the Central Government." 14. As per section 441(1) this Tribunal has power to compound any offence under the Companies Act, 2013 except an offence punishable with imprisonment only or punishment with imprisonment and also with fine. The present offence does not fall in the above two categories and hence the offence can be compoundable. 15. The respondent already instituted prosecution in the Court of Special Judge for Economic Offences at Hyderabad. As per section 441(1) of the Companies Act, 2013 this Tribunal has power to compound an offence even after institution of any prosecution. Hence this offence can be compou....