Narayana Hrudayalaya (P.) Ltd., In re.
National Company Law Tribunal has power to permit compounding of offence of unintentional delay in approving inter-corporate loans by directors of company
Where unsecured inter corporate loans requiring prior approval of the Board of directors are granted without such approval, though ratified later, unintentionally delaying approval, the National Company Law
Tribunal may permit compounding subject to payment of compounding fee as determined by it on an application made for the purpose under section 621A.
Companies Act, 2013 – Section 441 read with section 179(3) and 185 – Compounding of offences –
Powers of National Company Law Tribunal (NCLT) to compound – Unintentional delay in approving the inter-corporate loans by Board of directors – Can it be compounded by NCLT – Whether NCLT has power to allow compounding by paying the compounding fee as determined by it – Held, yes [Paras 7 & 10].
The NCLT has allowed compounding by paying the compounding fee for their unintentional delay in approving inter-corporate loans.
Appearances : G M Ganapathi for the Applicant.