RD Order u/s 454(5) of C.A,2013 dated 21.01.2022-United Conveyor Corporation(India) Private Limited Reducing penalty from 16.93 Lakhs to 3.74 Lakhs

RD Order u/s 454(5) of C.A,2013 dated 21.01.2022-United Conveyor Corporation(India) Private Limited Reducing penalty from 16.93 Lakhs to 3.74 Lakhs for default of Section 203 of CA 2013

Judicial updates -21st January 2022

SC in G.T. Girish Vs Y. Subba Raju (D) By LRs judgment dated 18th Jan 2022 held that Subordinate Legislation in the form of Statutory Rules is a ‘law’ u/s 23 of Indian Contract Act


Matter involving large scale State Revenues should be disposed speedily Dalmia Refractories Limited Vs State of Tamil Nadu (Madras High Court) dated 11/01/2022


One Time Settlement (OTS) of Bank Loan is Not a Right of Borrowers held by SC in
matter of Bijnor Urban Cooperative Bank Limited dated 15/12/2021


SEBI impose penalty for dealings in illiquid Stock Options at the BSE In Re Ashok Kumar Sharma HUF (SEBI) -23/12/2021


Taxation

Rajasthan HC disposes Plea seeking extension of due dates till portal Glitches removed

Tax Bar Association Vs Union of India (Rajasthan High Court) dated 12/01/2022

If AO accepts objections of assessee and does not assess or reassess the income which was the basis of notice than he cannot made additions on other issues

Yashoda Shivappa Nagangoudar Vs ITO (Bombay High Court) dated 05/01/2022

Provisional custom duty paid by Assessee cannot be treated as deposit

Nirma Ltd Vs C.C.-Jamnagar(prev) (CESTAT Ahmedabad) dated 13/01/2022

Bombay HC in Vodafone Idea Ltd. Vs ACIT dated 03/01/2022 held-

Reopening of Assessment not permissible to take another view on same material

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Bipul Kumar

Tribunals/Quasi-Judicial Bodies

In India, Tribunals are a part of the Executive branch of the Government which are assigned with the powers and duties to act in judicial capacity for settlement of disputes. Part XIV of the Constitution of India makes provisions for establishment and functioning of the Tribunals in India. They are quasi-judicial bodies that are less formal, less expensive and enable speedy disposal of cases.

There are tribunals for settling various administrative and tax-related disputes, including Central Administrative Tribunal (CAT), Income Tax Appellate Tribunal (ITAT), National Company Law Tribunal (NCLT), Customs, Excise and Service Tax Appellate Tribunal (CESTAT), National Green Tribunal (NGT) and Securities Appellate Tribunal (SAT), among others. Tribunals were added in the Constitution by Constitution (Forty-second Amendment) Act, 1976 as Part XIV-A, which has only two articles viz. 323-A and 323-B. Article 323A provides that a law made by the parliament may provide for establishment of an Administrative Tribunal for the Union and a separate Administrative Tribunal for each state or two or more states. Article 323 B empowers the parliament or state legislatures to set up tribunals for matters other than those mentioned under Article 323A.

Types of Tribunal in India

1. Debt recovery Tribunal

The Debt Recovery Tribunals have been constituted under Section 3 of the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993. The original aim of the Debts Recovery Tribunal was to receive claim applications from Banks and Financial Institutions against their defaulting borrowers. (DRT) was established for expeditious adjudication and recovery of debts due to banks and financial institutions in order to reduce the non-performing assets of the Banks and Financial Institutions. Prior to the introduction of Debt Recovery Tribunal, petitions had to be filed separately for adjudication of cases and execution proceedings in different courts depending upon their jurisdiction. DRT acts as a single judicial forum for adjudication of cases as well as execution of the decrees passed for recovery of debts due to banks and financial institutions under RDDBFI Act and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002.

2. National Company law

Tribunal National Company Law Tribunal (NCLT) is a quasi-judicial body exercising equitable jurisdiction, which was earlier being exercised by the High Court or the Central Government. It has been established by the Central government under section 408 of the Companies Act, 2013 with effect from 1st June 2016. The Tribunal has powers to regulate its own procedures. The establishment of the National Company Law Tribunal (NCLT) consolidates the corporate jurisdiction of the following authorities:

i)Company Law Board


ii) Board for Industrial and Financial Reconstruction.

iii) The Appellate Authority for Industrial and Financial Reconstruction

iv) Jurisdiction and powers relating to winding up restructuring and other such provisions, vested in the High Courts.

3. Consumer Forum

To protect the rights of the consumers in India and establish a mechanism for settlement of consumer disputes, a three-tier redressal forum containing District, State and National level consumer forums has been set up. The District Consumer Forum deals with consumer disputes involving a value of upto Rs. 1 crore. State Commission has jurisdiction in consumer disputes having a value of upto Rs.10 crore. The National Commission deals in consumer disputes above Rs.10 crores, in respect of defects in goods and or deficiency in service. It is important to note that consumer courts do not entertain complaints for alleged deficiency in any service that is rendered free of charge or under a contract of personal service.

4. Motor Accident Claims

Tribunal (MACT) The Motor Accidents Claims Tribunal deals with matters related to compensation of motor accidents victims or their next of kin. Victims of motor accident or legal heirs of motor accident victims or a representing Advocate can file claims relating to loss of life/property and injury cases resulting from Motor Accidents. Motor Accident Claims Tribunal are presided over by Judicial Officers from the State Higher Judicial Service and are under direct supervision of the Hon’ble High Court of the respective state.

5. Central Administrative Tribunal (CAT)

Central administrative Tribunal is a multi-member body to hear on cases filed by the staff members alleging non-observation of their terms of service or any other related matters and to pass judgments on those cases. This Tribunal established in pursuance of the amendment of Constitution of India by Articles 323A.

6. National Green Tribunal (NGT)

National Green Tribunal was established for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources including enforcement of any legal right relating to environment and giving relief and compensation of damages to persons and property and for related matters.

7. Income Tax Appellate Tribunal (ITAT)

ITAT is a quasi judicial institution set up in January, 1941 and specializes in dealing with appeals under the Direct Taxes Acts. The orders passed by the ITAT are final, an appeal lies to the High Court only if a substantial question of law arises for determination.

Presently ITAT has 63 Benches at 27 different stations covering almost all the cities having a seat of the High Court

Gujarat ROC penalty order for non certification of MGT- 7 by Practising Company Secretary in the matter of Mr. Parag Sheth, Liquidator of M/s Maxroth Impex Pvt. Ltd. (Order dated 17th Jan 2022)

Gujarat ROC penalty order for non certification of MGT- 7 by Practising Company Secretary in the matter of Mr. Parag Sheth, Liquidator of M/s Maxroth Impex Pvt. Ltd. (Order dated 17th Jan 2022)

As per Section 92 (1) Every company  shall prepare a return (hereinafter referred to as the annual return) in the prescribed form containing the particulars as they stood on the close of the financial year  regarding—………signed by a director and the company secretary, or where there is no company secretary, by a  company secretary in practice.

Section 450. Punishment where no specific penalty or punishment is provided

If a company or any officer of a company or any other person contravenes any of the provisions of this Act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act, the company and every officer of the company who is in default or such other person shall be liable to a penalty of ten thousand rupees, and in case of continuing contravention, with a further penalty of one thousand rupees for each day after the first during which the contravention continues, subject to a maximum of two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is in default or any other person.

Judicial updates-19th Jan 2022

Judicial updates-19th Jan 2022

CCI directs probe against Google for Abusing its Dominant Position against Publishers

In re Digital News Publishers Association (CCI) dated 07/01/2022

NCLT/NCLAT should not pass ad hoc orders regarding fee and expenses payable to Resolution Professionals

Devarajan Raman Vs Bank of India Limited (Supreme Court of India) dated 05/01/2022

NCLAT Stays Order Initiating CIRP as parties entered Settlement Agreement

Vinayak K Deshpande Vs Nexo Industries P Ltd (NCLAT Chennai) dated 04/01/2022

SC Restores Limitation Extension & excludes Period From 15.03.2020 to 28.02.2022 From Limitation

In Re Cognizance For Extension of Limitation (Supreme Court of India) dated 10/01/2022

Section 45 PMLA Act Gets Triggered while Considering Anticipatory Bail Plea

Asst. Director Enforcement Directorate Vs Dr. V.C. Mohan (Supreme Court of India) dated 04/01/2022

Builder obliged to provide occupancy certificate to flat owners & Failure amount to deficiency in service

Samruddhi Co-operative Housing Society Ltd. Vs Mumbai Mahalaxmi Construction Pvt. Ltd. (Supreme Court of India) -11/01/2022

Comments made during Mediation or Settlement Proceedings cannot be relied by Courts

Arjab Jena@ Arjab Kumar Jena Vs. Utsa Jena @ Pattnaik (Supreme Court of India) dated 05/01/2022

Nobody has a fundamental right to a public holiday

Kishnabhai Nathubhai Ghutia Vs Administrator Union Territory (Bombay High Court) dated 05/01/2022

God cannot be summoned by Court for inspection or verification

S.P. Eswaramurthy Vs Government of Tamil nadu (Madras High Court) dated 06/01/2022

Employees refusing regular promotion offer disentitled to financial upgradation benefits

Union of India Vs Manju Arora (Supreme Court of India) dated 03/01/2022

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Delhi ROC order for violation of Section 92 (4) & 137(3) of CA, 2013 imposing no penalty by applying amended provisions of Section 454(3) in the case of Central Cottage Industry Corporation of India Ltd. Order dated-13th Jan 2022

Delhi ROC order for violation of Section 92 (4) & 137(3) of CA, 2013 imposing no penalty by applying amended provisions of Section 454(3) in the case of Central Cottage Industry Corporation of India Ltd. Order dated-13th Jan 2022

Applying amended Proviso of section 454(3) of C A, 2013 w.e.f.dated 22 Jan 2021 imposing no penalty

Reference of Proviso of section 454(3) of C A, 2013

Provided that in case the default relates to non-compliance of sub-section (4) of section 92 or sub-section (1) or sub-section (2) of section 137 and such default has been rectified either prior to, or within thirty days of, the issue of the notice by the adjudicating officer, no penalty shall be imposed in this regard and all proceedings under this section in respect of such default shall be deemed to be concluded.

Higher addition fee upto 18 times on Certain MCA e Forms (MCA Notification dated 11th Jan 2022)

Higher addition fee upto 18 times on Certain MCA e Forms (MCA Notification dated 11th Jan 2022)

Please note 👉

Above Notification shall not be applicable on section 92(Annual return- Form MGT 7/7A), Section 137 (Form AOC 4). Additional fee Rs. 100/- per day will be applicable without any upper limit

Higher additional fees shall be applicable, if there is delay in filing eform 22 or e form PAS 3, as the case may be, on two or more occasions, within a period of 365 days from date of filing of last such belated eform for which additional fee or higher additional fee, as the case may be, was payable.

Wherever Higher additional fee is payable, additional fee shall not be charged.

Bangalore ROC passed penalty order for violation of Section 117(1) failure to file MGT 14 beyond 300 days by applying lesson penalty pursuant to amended section 446B of CA 2013

Bangalore ROC passed penalty order for violation of Section 117(1) failure to file MGT 14 beyond 300 days by applying lesson penalty pursuant to amended section 446B of CA 2013

Learning points:

-What to do if MGT 14 is not filed within 300 days ?

-How to apply lessor penalty provision as amended section 446B of CA 2013 on Small Company

Please also share your practical experiences in dealing such type of adjudication process.

Gujarat ROC Penalty order for non maintaining of Registered office (Section 12(1) violation) passed on dated 28th Dec 2021 in the matter of Tunwale E Vehicle India Pvt. Ltd.

Gujarat ROC Penalty order for non maintaining of Registered office (Section 12(1) violation) passed on dated 28th Dec 2021 in the matter of Tunwale E Vehicle India Pvt. Ltd.

Published on 10th Jan 2022

Penalty imposed as per Section 12 (8)- If any default is made in complying with the requirements of this section, the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees.

Section violated: 👉 Section 12 (1) A company shall, [within thirty days of its incorporation] and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it.

Section 12 (4) Notice of every change of the situation of the registered office, verified in the manner prescribed, after the date of incorporation of the company, shall be given to the Registrar [within thirty days] of the change, who shall record the same.

ROC Delhi Adjudication Order for non compliances of Section 203 of CA 2013 (Delay in appointment of Company Secretary) in the case of Yamuna International Airport Pvt. Ltd.

ROC Delhi Adjudication Order for non compliances of Section 203 of CA 2013 (Delay in appointment of Company Secretary) in the case of Yamuna International Airport Pvt. Ltd.

Order passed on 29th Dec 2021 imposing penalty on Company & Director.

👉 Violation of Section 203(4) of CA 2013

(4) If the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the Board at a meeting of the Board within a period of six months from the date of such vacancy.

Penalty imposed as per Section 203(5) If any company makes any default in complying with the provisions of this section, such company shall be liable to a penalty of five lakh rupees and every director and key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees and where the default is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such default continues but not exceeding five lakh rupees.