Introduction to Prospect Legal

Prospect Legal is a premier law firm with 15+ years of expertise in corporate litigation, regulatory compliance, and dispute resolution before the National Company Law Tribunal (NCLT). Our seasoned team of attorneys specializes in defending businesses against allegations of non-compliance under the Companies Act, 2013, and related regulations. With a proven track record of resolving 200+ cases involving statutory breaches, director disqualifications, and governance failures, we provide strategic solutions to mitigate penalties, restore compliance, and safeguard corporate reputations.

Where You Can Find Remedies?

Corporate compliance violations are adjudicated by the NCLT under Section 454 (penalties for non-compliance) and Section 441 (compounding of offenses) of the Companies Act. Additional oversight may involve:

• Registrar of Companies (RoC): Initiates strike-off proceedings for persistent defaults.
• Serious Fraud Investigation Office (SFIO): Investigates fraudulent activities under Section 212.

Facing compliance penalties or RoC actions? Contact Prospect Legal to challenge allegations and protect your business.

📞 Call us at 7000-12-7225

Understanding the Legal Process

Voluntary Process (Compliance Rectification):

1. Internal Audit: Identify and rectify non-compliance (e.g., overdue filings, governance lapses).
2. Compounding Application: File for compounding under Section 441 to reduce penalties.
3. RoC Liaison: Submit rectified documents and seek strike-off reversal.

Compulsory Process (NCLT-Driven):

1. RoC Petition: NCLT hears cases initiated by RoC for defaults like non-filing of financial statements.
2. Penalty Imposition: Tribunal imposes fines under Section 454 (up to ₹2 lakh per violation).
3. Appeal: Challenge penalties in NCLAT under Section 421.

Legal Protection Under Key Provisions

Section 454 of the Companies Act: Penalties for Non-Compliance

• When Can a Claim Be Filed?
  • If penalties are imposed without a 21-day notice or opportunity to respond.
  • When defaults arise from force majeure or third-party errors.
  • To challenge disproportionate fines exceeding statutory limits.

Section 441 of the Companies Act: Compounding of Offenses

• Powers of the Adjudicating Authority (NCLT):
  • Reduce or waive penalties upon proof of rectification.
  • Stay prosecution for compoundable offenses (e.g., missed AGMs).

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Case Assessment

• Compliance Audit: Review RoC filings, board minutes, and statutory registers.
• Risk Analysis: Quantify penalties and exposure (e.g., director disqualification risks).
• Strategy Development: Choose between compounding, NCLT appeals, or settlement.
• Alternate Remedies: Advise on CSR compliance, AGM adjournments, or revival petitions.

Step 2: Legal Documentation & Filing

• Draft Petitions: Prepare compounding applications under Section 441 or appeals against RoC orders.
• Evidence Compilation: Gather audit reports, bank statements, and rectified filings.
• NCLT Compliance: File petitions in the tribunal where the company is registered.
• Interim Relief: Seek stays on penalties or strike-off proceedings.

Step 3: Compliance & Negotiations

• RoC Negotiations: Submit rectified documents and negotiate penalty reductions.
• SFIO Coordination: Address queries in fraud investigations under Section 212.
• Tribunal Hearings: Advocate for leniency citing bona fide errors or external disruptions.
• Stakeholder Alignment: Resolve conflicts with dissenting directors or shareholders.

Step 4: Resolution & Final Actions

• NCLT Order: Secure reduced penalties or strike-off reversals.
• Post-Compliance: File overdue returns, conduct AGMs, and update registers.
• Appeal Management: Challenge adverse orders in NCLAT or High Courts.
• Governance Training: Implement workshops to prevent future defaults.

For expert legal representation, reach out to Prospect Legal now.
📞 Call us at 7000-12-7225