Compounding

This query is : Resolved

Kumar (Querist)
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19 October 2007 Dear All,

Please let me know the procedure for compounding of an offence under Companies Act.

With Best Regards,
Rakesh

R.V.RAO

R.V.RAO (Expert)
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19 October 2007 SECTION 621A OF THE COMPANIES ACT DEALS WITH PROCEDURE FOR COMPOUNDING OF OFFENCES.
THE APPLICATION FOR COMPOUNDING TO BE MADE TO ROC.
CIRCULAR BY CENTRAL GOVT. ON THE SUBJECT IS PRODUCED BELOW.
General Circular No: 6/2002
No. 2/6/2002-CL-V
No.23/75/96-CL.II
Government of India
Ministry of Law, Justice & Company Affairs
Department of Company Affairs
5th floor, `A’ Wing, Shastri Bhavan,
Dr. R.P. Road, New Delhi.
Dated: 6.3.2002
To
All Regional Directors
All Registrar of Companies
Subject:- Compounding of offence under Section 621A of the Companies Act,

1956 - companies under liquidation - clarification.

Sir,

A point has been raised in one of the inspection follow-up files as to whether the offences committed by Directors of a company can be compounded under Section 621A of the Companies Act, 1956, when the company in which they were Directors is under liquidation without obtaining the leave of the Company Court under Section 446 of the Companies Act, 1956.
2. The issue has been examined in the Department in consultation with the Ministry of Law and it is hereby clarified that in the light of the provisions of Section 446 read with Section 621A of the Companies Act, there is no legal bar for composition of an offence under Section 621A of the Act, provided the conditions specified in the Section and guidelines, if any, are fulfilled. It is also further clarified that the provisions of Section 446 of the Companies Act, 1956, does not bar criminal proceedings against the Directors of the company for any offences committed under the Companies Act and the offences are compoundable under Section 621A of the Act.
3. Where the penal provisions provide for proceedings against the companies also and if the offences are compoundable under Section 621A of the Companies Act, 1956, compounding will not be permissible against the company in view of the provisions of Section 446 of the Companies Act.
Yours faithfully,
( Thakur Sharan)Under Secretary to the Govt. of India
R.V.RAO

Kumar

Kumar (Querist)
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19 October 2007 Dear Sir,Thanks you for reply.

Please advice me what all documents and e-forms required for filing a compounding application.

With Best Regards,
Rakesh

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R.V.RAO

R.V.RAO (Expert)
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20 October 2007 UNDER MCA WEBSITE PL. OPEN EFORM NO 61 WHICH YOU HAVE TO FILL WITH ATTACHMENTS AND FILE ONLINE.
SO EFORM NO 61 IS THE FORM WHICH YOU NEED TO FILE ONLINE FOR COMPOUNDING OF OFFENCES UNDER COS ACT- SECTION 621A.
THE COMPULSORY ATTACHMENT TO
EFORM NO. 61 RELATES TO THE DETAILS OF THE APPLICATION WHERE YOU STATE THE HISTORY AND CIRCUMSTANCES AND DETAILS OF COMPOUNDING
R.V.RAO