COMPANY LAW COMMITTEE REPORT 2019 By ANJAN KUMAR

COMPANY LAW COMMITTEE REPORT 2019 By ANJAN KUMAR ROY FCS

Decriminalization • Is Company Law Committee batting for decriminalization? • De-clogging of Special Court and NCLT. • Ease of doing Business • Ease of Living 11/2/2020 2

Changes • Re-categorization of 16 compoundable offences to civil wrongs by Companies (Amendment) Act 2019 has already been done; • Further re-categorization of 23 compoundable offences to levy of penalty by the Adjudicating Officer; • Omission of 7 compoundable offences • 11/2/2020 3

Changes • 11 compoundable offences to be changes to “fine only” mode; • Bringing 5 compoundable offences to alternate mechanism using the contempt power of the NCLT; 11/2/2020 4

Corporate Criminal Liability • • • Proving Mens rea Proving the offence beyond doubt Trial Severity of punishment under criminal law Is there a necessity of Corporate Criminal Liability for minor corporate lapses? • What about the major corporate defaults / frauds. 11/2/2020 5

De-clogging of Tribunals / courts • NCLT – List of cases as on 03. 12. 2019 • NCLT Kolkata – Bench 1 – 32 cases and 8 order pronouncements • NCLT Kolkata – Bench 2 – 42 cases and 6 order pronouncements • NCLT Chennai – Bench 1 – 49 cases • NCLT Chennai – Bench 2 – 28 cases • NCLT Mumbai – Bench 1 main court – 94 matters 11/2/2020 6

De-clogging of Tribunals / courts • • • NCLT Mumbai – Bench 2 – 47 cases NCLT Mumbai - Bench 3 – 42 cases NCLT Mumbai - Bench 4 – 39 cases NCLT Mumbai - Bench 5 – 40 cases NCLT Delhi – Court 5 – 45 cases NCLT Delhi – Court 6 – 46 cases 11/2/2020 7

Contempt proceeding by NCLT • Section 425 of the Companies Act 2013 • In accordance with the provisions of Contempt of Court Act 1947 • Contempt as under the Contempt of Courts Act 1947…. In this Act, unless the context otherwise requires, — (a) "contempt of court" means civil contempt or criminal contempt; (b) "civil contempt" means wilful disobedience to any judgment, decree, direction, order, writ or other process of a court or wilful breach of an undertaking given to a court; (c) "criminal contempt" means 11/2/2020 8