Court : Company Law Board CLB
Decided on : May-12-1997
1. Hoffland Finance Limited has filed an application for compounding, duly forwarded by the Registrar of Companies, National Capital Territory of Delhi and Haryana under Section 621A of the Companies Act, 1956 (hereinafter referred to as "the Act"), for contravention of Section 68(a) and 68(b) of the Act. The Registrar of Companies has already filed a prosecution against the company and five of its delinquent directors and the same is pending before the Additional Chief Metropolitan Magistrate, Delhi. The defaults under Section 68(a) and 68(b) of the Act attract a maximum penalty of Rs. 10,000 or imprisonment up to five years or with both. When the present application of the applicants was taken up by the learned Member, Northern Region Bench, Company Law Board, the learned Member felt that before the question of compounding could be considered, the applicants were to obtain the permission of the criminal court where the proceeding was pending. Accordingly, the applicants were directe...
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