From a plain reading of section 621A (1) of the Indian Companies Act, it is evident that any offence punishable under the Act, not being an offence punishable with imprisonment only or with imprisonment and also with fine, may be compounded either before or after the institution of the prosecution by the Company Law Board and in case, the minimum amount of fine which may be imposed for such offence does not exceed ` 5000 by the Regional Director on payment of certain fine. An offence committed by an accused under the Act, not being an offence punishable with imprisonment only or imprisonment and also with fine, is permissible to be compounded by the Company Law Board either before or after the institution of any prosecution. In view of sub-section (7) of section 621A, the criminal court also possesses similar power to compound an offence after institution of the prosecution. The power under sub-section (1) and sub-section (7) of section 621A are parallel powers to be exercised by the Company Law Board or the authorities mentioned therein and prior permission of Court is not necessary for compounding the offence, when power of compounding is exercised by the Company Law Board.
V.L.S. Finance Ltd . v. Union of India, C.A. No. 2102 of 2004; Decided on 10-5-2013 (SC)
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