Introduction to Prospect Legal

Prospect Legal is a trusted 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 MCA (Ministry of Corporate Affairs) compliance violations, ensuring adherence to the Companies Act, 2013, and mitigating penalties. With a proven track record of resolving 150+ cases involving non-filing of financial statements, director disqualifications, and governance lapses, we provide strategic solutions to restore compliance and safeguard corporate integrity.

Where You Can Find Remedies?

MCA compliance violations are adjudicated by the NCLT under Section 454 (penalties) and Section 441 (compounding of offenses) of the Companies Act. Additional authorities involved include:

• Registrar of Companies (RoC): Initiates strike-off proceedings for persistent defaults.
• Regional Director (RD): Reviews revival petitions and compliance rectifications.

Facing RoC penalties or strike-off threats? Contact Prospect Legal to challenge allegations and protect your business.

📞 Call us at 7000-12-7225

Understanding the Legal Process

Voluntary Process (Proactive Compliance):

1. Internal Audit: Identify defaults (e.g., missed annual filings, AGM delays).
2. Rectification: File overdue documents (Form AOC-4, MGT-7) with RoC.
3. Compounding Application: Seek penalty reduction under Section 441.

Compulsory Process (NCLT Intervention):

1. RoC Petition: NCLT hears cases for defaults like non-filing of financial statements.
2. Tribunal Hearing: Present evidence of force majeure or administrative errors.
3. Penalty Orders: NCLT imposes fines under Section 454 (up to ₹2 lakh per violation).
4. Appeal: Challenge adverse orders 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 exceed statutory limits (₹2 lakh/day for continuing defaults).
  • When defaults arise from third-party errors (e.g., auditor delays).
  • To contest penalties imposed without a 21-day notice.

Section 441 of the Companies Act: Compounding of Offenses

• Powers of the Adjudicating Authority (NCLT):
  • Waive or reduce penalties upon proof of rectification.
  • Stay prosecution for compoundable offenses (e.g., non-filing of DIR-3 KYC).

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Case Assessment

• Compliance Audit: Review RoC filings, director disclosures, and statutory registers.
• Risk Analysis: Quantify penalties and disqualification risks for directors.
• Strategy Planning: Choose between compounding, NCLT appeals, or revival petitions.
• Alternate Remedies: Advise on AGM adjournments or CSR compliance rectification.

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 Liaison: Submit rectified documents and negotiate penalty reductions.
• Tribunal Representation: Advocate for leniency citing bona fide errors or technical glitches.
• Stakeholder Alignment: Resolve disputes with dissenting directors or shareholders.
• Post-Filing Updates: Monitor RoC responses and tribunal hearing dates.

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 rulings 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