9911796707
TMI Blog2012 (12) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... d Rs. 50,000/- on each member of the Governing Council. 2. This order is the subject matter of the present petition. 3. At the outset, this Court notes that this is an appeal under Section 10F of the Companies Act which clearly stipulates that an appeal lies against the order of the CLB on a question of law arising out of such an order. The decision of the CLB in the fact finding Court. It is only when a question of law emanates that an appeal would lie under this statutory provision. Relevant it would be state that no question of law has been formulated in the entire body of the appeal. Grounds of appeal are contained in the body of the petition which will be the subject matter of discussion in the following paragraphs. 4. The DDCA have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the registration of the said company pursuant hereto shall cease to have any force or effect on violation of any of the aforesaid conditions or any of the conditions and provisions contained in its memorandum of association and thereupon this licence shall be revoked in accordance with the provisions of the said section 25 of the Companies Act, 1956." 5. Submission of the appellant is that admittedly the company by blatant violation of the conditions of the licence had paid lacs of rupees to its members; no prior approval of the Central Government has been taken. On 22.11.2010 a complaint had been made by the petitioner to the Ministry of Corporate Affairs bringing these facts to their knowledge. Legal notice dated 25.6.2011 to the Mini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment to impose penalty for any default committed by a company or any its officers thereof provided that the said offence is compoundable under Section 629A of the said Act. Section 629A applies to cases where there is contravention of provisions of this Act for which there is no punishment specifically provided. 9. The licence had been granted to the company under Section 25 of the Companies Act. Under Section 25(5) of the Companies Act the licence may be granted by the Central Government on such conditions and subject to such regulations as it thinks fit which shall be binding upon on the body to which it is granted. Sub-Section 8 specifies the conditions under which the licnece can be revoked by the Central Government. Sub-Section 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000/- on the company and Rs. 50,000/- on each of the members of the Council who had paid remuneration/honorarium to its members without prior approval of the Central Government. It was a fair exercise of the its discretion based on reasoned findings. 14. Even otherwise apart from the fact that no question of law has been formulated, the grounds of appeal lay challenge only to the express provisions of the licence; submission being that if there is a breach or violation of any of the conditions of the licence there would be an automatic revocation; this submission is a misdirected submission. The licence can be revoked by the Central Government, but only after an opportunity of hearing has been granted; it has to be a speaking order and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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