The Registrar of Companies, Patna passed an adjudication order under Section 454 of the Companies Act, 2013 against a Nidhi company and its managing director for violation of Section 173(1) relating to mandatory Board Meetings. During inspection, it was observed that the company failed to file Form MGT-7 for FY 2021-22 and could not maintain or produce minutes or records proving that Board Meetings were held during the relevant financial year. The ROC concluded that the company had failed to comply with the statutory requirement of holding Board Meetings at prescribed intervals. Despite issuance of notice for e-adjudication and scheduling of hearing, neither the company nor its managing director appeared or submitted any representation. Consequently, penalties were imposed under Section 450 of the Companies Act, 2013. The company was penalized ₹10,000 and the managing director was also penalized ₹10,000. The order further directed rectification of the default within 90 days and stated that appeal may be filed before the Regional Director, Kolkata within 60 days.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Patna
ROC-cum-Official Liquidator, Ministry Of Corporate Affairs, High Court Of Patna, Maurya Lok Complex, Block “A” 4th Floor, Dak Bungalow Road, Patna, Bihar, India, 800001
Phone: 0612-2950121
E-mail: roc.patna@mca.gov.in
Order ID: PO/ADJ/05-2026/PT/02259 | Dated: 21/05/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 450 OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide its Gazette notification number S.O. 698(E) dated 10/02/2026 appointed undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of the Companies Act, 2013 [herein after known as Act] read with Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.
B. Company details:
In the matter relating to SHG MUTUAL BENEFITS NIDHI LIMITED [herein after known as Company] bearing CIN U74999BR2016PLC032131, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at C/O SATISH KUMAR, YADAV MARKET BITHAN ROAD NA HASANPUR BAZAR SAMASTIPUR BIHAR INDIA 848205
Individual details:
In the matter relating to SATISH KUMAR___________
C. Provisions of the Act:
If a company or any officer of a company or any other person contravenes any of the provisions of this Act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act, the company and every officer of the company who is in default or such other person shall be 1[liable to a penalty of ten thousand rupees, and in case of continuing contravention, with a further penalty of one thousand rupees for each day after the first during which the contravention continues, subject to a maximum of two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is in default or any other person]
D. Facts about the case:
1. Default committed by the officers in default/noticee – The provisions of Section 173(1) of the Companies Act, 2013, states that ?Every company shall hold the first meeting of the Board of Directors within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board?.
During the course of inspection, it has been found that the company has not filed Form MGT-7 (Annual Return) for the FY 2021-22 and also the company does not have maintained or provided minutes or any documents to prove that it has held the Board Meetings in the aforementioned financial years.
Thus, non-holding of Board Meetings for the F.Y. 2021-22 leads to the violations of the provisions of Section 173(1) of the Companies Act, 2013
Therefore, the Company and its managing director are liable for penalty as per the provisions of section 450 of the Companies Act, 2013 read with Companies (Adjudication of Penalties) Amendment Rules,
2. This office has issued notice for e adjudication on 13.03.2026, thereafter hearing was scheduled on 21.05.2026, however, none appeared on the said date and no representation has been received in this office. Hence it appears that the company and its managing director has defaulted the provisions of section 173 of the Companies Act, 2013.
E. Order:
1. No one appeared on the date of hearing and no representation has been received in this office. Hence, penalty imposed as per provision of section 173 r.w. section 450 of the Companies Act, 2013.
2. The details of penalty imposed on the company, officers in default and others are shown in the table below:
| (A) | Name of person on whom penalty imposed (B) | Rectification of Default required (C) | Penalty Amount (D) | Additional Penalty (E) (*Per day of continuing default i.e. date of rectification of default less order issue date) | Maximum limit for Penalty (F) |
| 1 | SHG MUTUAL BENEFITS NIDHI LIMITED having CIN as U74999BR2016P LC032131 | 10000 | 0 | 200000 | |
| 2 | SATISH KUMAR having DIN as 07490030 | 10000 | 0 | 50000 |
3. The notified officers in default/noticee shall rectify the default mentioned above and pay the penalty, so applicable within 90 days of receipt of the order.
4. The notified officers in default/noticee shall pay the penalty amount via ‘e-Adjudication’ facility which can be accessed through the respective login IDs on the website of Ministry of Corporate Affairs and upload the copy of paid challan / SRN of e-filing (if applicable) on the ‘e-Adjudication’ portal itself. It is also directed that the penalty so imposed upon the officers in default shall be paid from their personal sources/income.
5. Appeal against this order may be filed in writing with the Regional Director, RD Kolkata within a period of sixty days from the date of receipt of this order, in Form ADJ setting for the grounds of appeal and shall be accompanied by a certified copy of this order [Section 454 (5) & 454 (6) of the Act, read with Companies (Adjudication of Penalties) Rules, 2014].
6. For penal consequences of non-payment of penalty within the prescribed time limit, please refer Section 454(8) of the Companies Act, 2013.
Dr Rameshkumar,
Registrar of Companies
ROC Patna
