Compounding of Offences Under Section 430 of Indian
Companies Act
430.Composition of certain offences. - (1)
Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any
offence punishable under this Act (whether committed by a company or any officer
thereof), not being an offence punishable with imprisonment only, or with
imprisonment and also with fine, may either before or after the institution of
any prosecution, be compounded by -
(a) the Court or theCompany Law Tribunal; or
(b) where the maximum amount of fine which may be imposed for such offence
does not exceed such amount as may be prescribed by the Regional Director
on payment or credit, by the company or the officer, as the case may be, to
the Central Government of such sum as the Tribunal or the Regional Director, as
the case may be, may specify ;
(c) any offence which is punishable under this Act with imprisonment or with
fine or with both, shall be compoundable with the permission of the Court, in
accordance with the procedure laid down in the Code of Criminal Procedure for
compounding of offences.
Provided that the sum so specified shall not, in any case, exceed the maximum
amount of fine which may be imposed for the offence so compounded:
Provided further that in specifying the sum required to be paid or credited
for the compounding of an offence under this sub-section, the sum, if any, paid
by way of additional fee under sub-section (2) of section 409 shall be taken
into account.
(2) Nothing in clause (a) of sub-section (1) shall apply to an offence
committed by a company or its officer within a period of three years from the
date on which a similar offence committed by it or him was compounded under this
section.
(3) Every Regional Director shall exercise the power to compound an offence,
subject to the direction, control and supervision of the Company Law Tribunal.
(4) Every application for the compounding of an offence shall be made by the
company or an officer in default to the Company Law Tribunal or the Regional
Director, as the case may be.
(5) A copy of every application made under sub-section (4) shall be served by
the company or the officer in default, as the case may be, on the Registrar
forthwith, who shall forward his comments thereon to the Company Law Tribunal or
the Regional Director, as the case may be, within seven days from the date of
receipt of application.
(6) Where any offence is compounded before the institution of any
prosecution, no prosecution shall be instituted in relation to such offence,
either by the Registrar or by any shareholder of the company or by any person
authorised by the Central Government against the offender in relation to whom
the offence is so compounded.
(7) Where the compounding of any offence is made after the institution of any
prosecution, such composition shall be brought by the Registrar in writing, to
the notice of the Court in which the prosecution is pending and on such notice
of the compounding of the offence being given, the company or its offer in
relation to whom the offence is so compounded shall be discharged.
(8) The Company Law Tribunal or the Regional Director, as the case may be,
while dealing with a proposal for the compounding of an offence for a default in
compliance with any provision of this Act which requires a company or its
officer to file or register with, or deliver or send to, the Registrar any
return, account or other document, may, direct, by order, if it or he thinks fit
to do so, any officer or other employee of the company to file or register with
or on payment of the fee, and the additional fee, required to be paid under
section 410, such return, account or other document within such time as may be
specified in the order.
(9) Any officer or other employee of the company who fails to comply with any
order by the Company Law Tribunal or the Regional Director under sub-section (8)
shall be punishable with imprisonment for a term which may extend to six months,
or with fine not exceeding fifty thousand rupees, or with both.
