National Company Law Appellate Tribunal, Chennai: While disposing off the present appeal in less than 30 days, a Division bench comprising of Rakesh Kumar Jain, J., and Shreesha Merla (Technical Member), modified the amount of cost imposed by the NCLT from Rs. 10,00,000/- to Rs. 1,00,000/-.
In the instant matter, the NCLT vide order dated 26-04-2023, imposed a cost of Rs. 10,00,000/- (Ten Lakhs) for the restoration of appellant’s company name in the register maintained by the Registrar of Companies (RoC). Aggrieved by the order passed by the Adjudicating Authority, the appellant preferred the present appeal before the NCLAT challenging the same.
The appellant contended that the appellant failed to file the returns with RoC due to the negligence on the part of independent auditors and therefore, filed the application before the NCLT seeking restoration of appellant’s company name in the register maintained by the RoC. The appellant further contended that the appellant’s company is carrying on its business for the same purpose it was incorporated. On the other hand, the respondent contended that though they agree with the imposition of the cost on the appellant but at the same time they cannot justify the imposition of such a huge cost in the given facts and circumstances of this case.
The NCLAT observed that in the light of facts and circumstances of the present case, the imposition of cost of Rs. 10,00,000/- is highly excessive. The NCLAT modified the amount of cost from Rs. 10,00,000/- to Rs. 1,00,000/.
[Jaiguhan Venture Properties (P) Ltd. v. Registrar of Companies, Chennai, CA (AT) (CH) No. 46 of 2023, order dated -01-2023]
Advocates who appeared in this case :
Mr. CS K. Gaurav Kumar, Counsel for the Appellant;
Mr. Avinash Krishnan Ravi, Counsel for the Respondent.