An offence under the Companies Act, 2013 was compounded by the Company and Compounding order was issued by the Compounding Authority specially for offences by the Company and the Directors of the Company as officer in de

It is necessary to refer to the below cases to understand the applicable law in the given circumstances. No appeal against order of composition: A person having agreed to the composition of offence is not entitled to challenge the said proceeding by filing an appeal. [ S V Bagi v. State of Karnataka (1992) 87 STC 138 ]. No penalty or prosecution after compounding: In P P Varkey v. STO (1999) 114 STC 224 (Bom HC DB) , it was held that once an offence is compounded, penalty or prosecution proceeding cannot be taken for same offence. No challenge to the compounding order: In S Viswanathan v. State of Kerala (1993) 113 STC 182 (Ker HC DB) , it was held that once the matter is compounded, neither department nor assessee can challenge the compounding order. Department cannot reopen the matter on the reason that actual suppression was much higher. In view of the above, it can be said that the director will not be allowed to make an appeal. According to section 441(5) of the Companies Act, 2013. If any officer or other employee of the company who fails to comply with any order made by the Tribunal or the Regional Director or any officer authorised by the Central Government under section 441 (4) of the Companies Act, 2013, the maximum amount of fine for the offence proposed to be compounded under this section shall be twice the amount provided in the corresponding section in which punishment for such offence is provided.