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This is an application filed by M/s. Jaipur IPL Cricket
Private Limited and its two Directors namely, Mr. Raghuram lyer and Mr. Ranjit
Barthakur under section 621A of the Comnpanies Act 1956 with a prayer for
compounding the offences committed by them under section 297 of the Act. After
issuance of the show-cause notice the prosecution has been launched before the
Metropolitan Magistrate, 40th Court, Girgaon, Mumbai bearing criminal complaint
No. 4953/SS/2014/232 dated 17.06.201 5. It is thereafter that the application
for compounding has been filed.
2. The allegation against the applicant-company is that the
company had approved some contracts in various Board Meetings which have been
entered into tviv-' between the applicant-company on the one hand and M/s.
Agilivs IT Services IndiaPrivate Limited fig EM Management Primate Limited on
the other. The offences continued for six years from 2008 to 2013. It is
obvious that the contracts entered into between the applicant-company and the
other two were related party transactions and the sanction of the board and
Central Govt. as envisaged by section 297 had not been obtained. The applicants
have claimed that the lapse committed by them is technical in nature and is
devoid of any mans ran. Accordingly, a request has been made for a lenient
view. The application is duly supported by the affidavit.
Held:
6. Keeping in view the enormity of the offence, the nature of
transactions and the repeated violations spanning over six years, 1 am of the
view that a sum of Rs, 2 lacs (Rupees Two lacs only) per applicant shall be
levied as the fine to meet the ends of justice. Accordingly all the three
applicants are directed to pay a sum of Rs. 2 lacs each and deposit the same
with the authorities within two weeks failing which the prosecution shall
continue, The applicants are warned to be careful in future and if such a
conduct is ever repeated then appropriate proceedings shall be initiated and a
serious view shall be taken. The Company Secretary concerned shall advise the
applicants in accordance with law.
7. In view of the above, the offence stands compounded in the
above terms on deposit of the amount. The application stands disposed of.
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