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TMI Blog2012 (12) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... licence amounts to an automatic revocation - Except sub-section (10) of Section 25 of the Companies Act, there is no provisions u/s 25 of the Act which lays down a penalty for non-compliance of the licence granted u/s 25; for a breach of such conditions provisions of Sec 629 A of the Act have to be resorted to - no infirmity in impugned order of CLB; it calls for no interference. Appeal is without any merit; it is accordingly dismissed with costs of Rs. 20,000/-. - CO.A (SB) NO. 84 OF 2012 - - - Dated:- 2-11-2012 - MS. INDERMEET KAUR, J. Tanuj Khurana and Issah Madan for the Appellant. J.S. Bakshi and Amitesh Bakshi for the Respondent. ORDER 1. This appeal is directed against the judgment of the Company Law Board (CL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e given by the Company to any of its members, whether officers or servants of the company or not except payment of out-of-pocket expenses, reasonable and proper interest on money lent or reasonable and proper rent on premises to the company; (4) and (5)** ** ** (6) That nothing in clauses (3), (4) and (5) shall prevent the payment by the company in good faith, with the previous approval of the Central Government of India reasonable and proper remuneration to any of its members in return for any services (Not being services of kind which are required to be rendered by a member), actually rendered to the company; (7) That an alteration shall be made to the Memorandum of Association or to the Articles of As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the respondent. He has admitted that honorarium was in fact paid by the company (DDCA) to its various members for the aforenoted three years; submission being that for the year 2010-11 a prior approval of the Central Government has been taken which fact had been brought to the notice of the CLB. For the other two years i.e. for the financial year 2008-09, 2009-10 prior approval for payment of honorarium to its members had not been taken for which the requisite application under Section 621A of the Companies Act seeking compounding of this offence had been filed. 7. Impugned order after noting the respective the contentions of the parties and the admitted facts as noted above had permitted the compounding of the offence under Section 62 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for the year 2010-11 has been obtained. For the other two years i.e. 2008-09, 2009-10 prior approval from the Central Government has not been taken for which purpose the said application under Section 621A of the Companies Act had been filed. 12. Since the offence was committed by the company for the breach of the conditions of the licence which licence has been given to the company under Section 25 of the Companies Act, Section 629A of the Companies Act rightly stood attracted. No specific penalty having been provided for contravention of sub-section (5) with regard to the conditions and regulations of the licence; accordingly the Company and its officers shall in default be punishable under Section 629A; Section 629 A not creating any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evance of the petitioner in this appeal. The prayer made in this petition is that appropriate action be taken against the company for the breach committed by it of Section 25 of the Companies Act under which the licence has been granted to it. 16. There is no dispute that remedy of an appeal under Section 10F of the Companies Act impugning the order of the CLB is an independent remedy but at the same time this Court cannot lose sight of the fact that the averments and the prayers made in the Writ Petition if granted would tantamount to the same relief which has now been sought for in the present appeal. That apart an appeal under Section 10F is maintainable only on a question of law and as noted supra no question of law has even been form ..... X X X X Extracts X X X X X X X X Extracts X X X X
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