Another Hit by NCLT

Case: M/s MVM Metal and Alloys Pvt Ltd

*Order:*
Company filed financial statements for 2011-12 which were *not legible,* NCLT compounded the offence on payment of fine of Rs. 50,000 each on the Directors and on the Company totaling Rs. 2,00,000.

*Facts:*
The attached financials which were filed by the Company for the Financial Year 2011-12 in e form were not legible and therefore were not accepted by the ROC and hence the same were not taken on record, thus attracted the violation of Section 162 of the Companies Act, 1956.

Thereafter, the Directors of the Company filed the same in year 2013 and the ROC took the date of filing the hard copy as the date of Compliance and accordingly the

Compounding fees was recommended by the ROC to NCLT for the levy of Compounding Fees upto the date of filing of filing of those Financials.

*Section 162 of the Companies Act, 1956 says:*

If a company fails to comply with any of the provisions contained in section 159, 160 or 161, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to Rs. 500 for every day during which the default continues.