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 regulatory breaches under the Companies Act, 2013, and allied regulations. With a proven track record of resolving 200+ cases involving non-compliance, governance lapses, and director disqualifications, we provide strategic solutions to mitigate penalties, restore compliance, and protect corporate reputations.

Where You Can Find Remedies?

Regulatory breach cases are adjudicated by the NCLT under Section 454 (penalties) and Section 441 (compounding of offenses) of the Companies Act. Additional authorities include:

• Securities and Exchange Board of India (SEBI): For breaches in listed entities.
• Reserve Bank of India (RBI): Governs financial sector compliance.
• Registrar of Companies (RoC): Initiates penalties for filing defaults.

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

📞 Call us at 7000-12-7225

Understanding the Legal Process

Voluntary Process (Proactive Compliance):

1. Internal Audit: Identify breaches (e.g., non-filing of financial statements, AGM delays).
2. Rectification: Submit overdue documents (Form AOC-4, MGT-7) to RoC.
3. Compounding Application: Seek penalty reduction under Section 441.

Compulsory Process (NCLT Intervention):

1. Regulatory Petition: NCLT adjudicates cases initiated by SEBI, RBI, or RoC.
2. Tribunal Hearing: Present evidence of force majeure or procedural errors.
3. Penalty Orders: NCLT imposes fines under Section 454 (up to ₹2 lakh/day).
4. Appeal: Challenge adverse rulings 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 or lack a 21-day notice.
  • When breaches stem from third-party errors (e.g., auditor delays).
  • To contest disproportionate fines or wrongful director disqualifications.

Section 441 of the Companies Act: Compounding of Offenses

• Powers of the Adjudicating Authority (NCLT):
  • Reduce/waive penalties upon proof of rectification.
  • Stay prosecution for compoundable offenses (e.g., missed DIR-3 KYC).

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Case Assessment

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

Step 2: Legal Documentation & Filing

• Draft Petitions: Prepare compounding applications or appeals against regulatory orders.
• Evidence Compilation: Gather audit reports, board resolutions, 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

• Regulatory Liaison: Negotiate with SEBI/RBI/RoC for penalty reductions.
• Tribunal Representation: Advocate for leniency citing bona fide errors.
• Stakeholder Alignment: Resolve disputes with dissenting directors/shareholders.
• Post-Filing Updates: Monitor tribunal dates and regulatory responses.

Step 4: Resolution & Final Actions

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

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