Case Law Details
Registrar of Companies Vs Karan Kishore Samtani (NCLAT Delhi)
Introduction: The National Company Law Appellate Tribunal (NCLAT) recently upheld the compounding fees of Rs. 5000 per day in the case of Registrar of Companies vs. Karan Kishore Samtani. The appellant, Registrar Companies West Bengal, challenged an order by the National Company Law Tribunal (NCLT) related to compounding fees in Company Petition CP No. 690/KB/2017.
Facts- The offender/director is accused of being the director of more than twenty private limited companies as of March 31, 2015. He actually demanded that at least one company out of the twenty leave the director’s office by March 31, 2015. He submitted his letter of resignation to the company, using the name Fabins Properties Private Ltd. The company’s board of directors approved it on December 29, 2015. However, the Registrar of Companies got notification of his resignation.
He received a show cause notice from the West Bengal Registrar of Businesses on January 27, 2016, requesting him to explain why he should not be prosecuted under the Companies Act of 2013’s sections 165(1) and 165(3) for simultaneously serving as the director of more than 20 companies. He filed a representation with the Registrar with a request to compound an offence in accordance with Section 441(1) of the Companies Act; therefore, it appears that he accepted and admitted his guilt. This tribunal will review the aforementioned proposition.
The offender/director pleaded guilty, making it obvious that he was simultaneously serving in the capacity of director for more than 20 private limited corporations. He actually had to submit his resignation to at least one of the corporations on or before March 31, 2015, but he chose not to.
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