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TMI Blog2019 (5) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... uted 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 compounded. I have seen the certified copy of the extract of board resolution dated January 23, 2018 of the petitioner-company wherein the board of directors resolved for filing the compounding petition. After considering the material on record and after taking into account the submissions made by counsel that lenient view may be taken, I hereby levy a compounding fee for delay in complying section 135 of the Companies Act, 2013 on the company and directors - the compounding fee levied shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Companies Act, 2013 which prescribes for social responsibility and every company having net worth of rupees five crores or more or turnover of rupees one thousand crores or more or net profit of five crores or more during in any financial year shall constitute a corporate social responsibility committee of the board consisting of three or more directors out of which at least one direc tor shall be an independent director. Further section 135(5) of the Act also prescribes the board of directors of every company shall ensure that the company spends, in every financial year at least two per cent. of the aver age net profits of the company made during the three immediately pre ceding financial years in pursuance of its corporate social res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) The applicants have admitted the violation of the provisions of section 134(3)(o) read with section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules for the financial year 2014-15. (b) The company has to spend the amount of 2 per cent. of average net profit for the year 2014-15 and 2015-16, in the year 2016-17 and 2017- 18 the company has formed a CSR Committee in 2015-16 and disclosed CSR policy and amount spent details in 2015-16 and 2016-17 in board of directors report. (c) CSR spent details : Financial year Amount to be spent (Rs.) Actual spent (Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting 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 section 135 being a new provision inserted in the Companies Act, 2013 the company is not aware of it. 10. It is contention of counsel for the applicant that the company has to spend ₹ 19,19,650 for the financial year 2014-15 but the company failed to spend due to adverse conditions in the commodity market and carry forwarded the amount to next financial years. In the financial year 2016-17 and financial year 2017-18 the company has spend ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 compounded. 16. Counsel for the applicant filed a memo stating that the CSR obligation of ₹ 19,19,650 for the financial year 2014-15 was carried forward, out of which ₹ 15.50 lakhs was spent in financial year 2016-17 and remaining ₹ 4 lakhs was spent in financial year 2017-18. Counsel further stated that the CSR obligation of ₹ 7,85,408 pertaining to the financial year 2015-16 was carried f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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