Ravikumar Duraisamy, Member - (1.) National Company law Tribunal, Hyderabad Bench vide Order dated 21.10.2016 dismissed the compounding Application No. 3/621A/HDB/2016 filed by the Applicants in view of the facts that the reliefs as sought by the Applicants is premature and directed the Applicants to approach the Central Government for approval of the Related Party Transactions. Against the orders of this Tribunal, the Applicants have preferred an appeal to the Hon'ble National Company Law Appellate Tribunal (NCLAT). The Hon'ble Appellate Tribunal vide its Order dated 28.02.2017 directed this Tribunal to examine the case in terms of Section 621A of the Companies Act, 1956. Accordingly, the Applicants submitted their written submissions dated 31.03.2017. The Brief facts of the case are as follows:
(2.) That the Applicants in the instant case have filed the instant Application seeking compounding of an offence allegedly committed under Section 297 of the Companies Act, 1956 which prohibited Related Party Transactions except with the consent of the Board of Directors and in case the Company was having a paid up Share Capital of not less than Rs. 1 Crore, previous approval of Central Government was required under Companies Act, 1956.
(3.) The Applicants Company is a listed Company incorporated on 16.12.2002 under the provisions of Companies Act, 1956 and was duly registered with the Registrar of Companies, Hyderabad with CIN No. L22122AP2002PLC040110 and Applicants Nos. 2 and 3 are the Directors of the Applicant Company, having DIN Nos. 00287518 and 00287639 respectively.;