NCLT Compounding for delay in appointment of women director
Company was supposed to appoint woman director by 31.12.2014 but appointed only in March 2016 after a delay of 14 months, thus violating Sec.149 of CA 2013 and attracting punishment prescribed u/s 172 of the Act. ROC initiated criminal proceedings u/s 251 of CrPC read with Sec.450 of CA2013. Thereafter company filed compounding application with CLB, which was transferred to NCLT. Company contended that its commercial activity is closed since the year 2000 and its capital has been eroded and it is proposed to close the company. NCLT Hyderabad vide order dated 29.8.2016 permitted the company to compound the offence without permission of the criminal court on payment of fee of Rs.1 lac by the company and Rs.50,000 by each of 3 directors.