The Registrar of Companies, Mumbai-I imposed a penalty of ₹41,900 on an individual director under Section 159 of the Companies Act, 2013 for contravening Section 155 by obtaining and possessing a duplicate Director Identification Number (DIN). The director had originally been allotted a DIN in 2008 but inadvertently obtained a second DIN in 2021 during the incorporation of a company. While the noticee contended that the duplicate allotment occurred due to lack of technical knowledge and absence of any warning from the MCA system, the ROC held that Section 155 expressly prohibits an individual from applying for, obtaining, or possessing more than one DIN. Taking into account the director’s bona fide conduct in filing a suo motu adjudication application and the absence of mala fide intent, the adjudicating officer adopted a lenient approach and imposed a reduced penalty, including a nominal daily penalty for the continuing default period.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Mumbai I
100, Everest, Marine Drive, Mumbai, Maharashtra, India, 400002
Phone: 022-22812627
E-mail: roc.mumbai@mca.gov.in
Order ID: PO/ADJ/06-2026/MH/02291 Dated: 12/06/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 159 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. Individual details:
In the matter relating to JIGNESH MAHENDRAKUMAR SHAH ———-
C. Provisions of the Act:
If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.
D. Facts about the case:
1. Default committed by the officers in default/noticee – Whereas, the Registrar of Companies, Mumbai-I (hereinafter referred to as the ROC, Mumbai I) is in receipt of a suo-motu Adjudication Application dated 09.02.2026 submitted by Mr. Jignesh Mahendrakumar Shah, (hereinafter referred to as the Applicant) under Section 454 read with Section 159 of the Companies Act, 2013 for default under Section 155 of the Act on account of obtaining duplicate Director Identification Number (DIN). Whereas Section 155 of the Act reads as follows:
No individual, who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number.
Whereas the Applicant stated that he had applied for and was allotted the first DIN:02062231 on 07.04.2008 . Further, the applicant admitted in his application that at the time of incorporation of Company namely ACWO Lifestyle Pvt Ltd, he inadvertently applied for and was allotted second DIN: 09376265 on 26.10.2021. Thus, the Applicant was in possession of two DINs in contravention of the provisions of Section 155 of the Companies Act, 2013.
The Applicant is requested to submit whether the Applicant has filed E-form DIR-5 for surrender of duplicate DIN.
2. The Noticee requested for an E- hearing. Acceding to the request, an opportunity of being heard was granted to him by the Adjudicating Officer under the provisions of Section 454(4) of the Act on 03.06.2026 at 01:00 PM (IST). In this regard, a notice bearing ID: EH/ADJ/05-2026/MH/01635 dated 25.05.2026 was issued.
E. Order:
1. A Show Cause notice bearing ID: SCN/ADJ/05-2026/MH/04353 dated 11.05.2025 was issued to the Noticee on the E-adjudication portal under Section 454 read with Section 159 for default under Section 155 of the Act.
B. A reply of the noticee to the said Show Cause Notice was received on the E-adjudication portal on 20.05.2026.
C. The Noticee requested for an E- hearing. Acceding to the request, an opportunity of being heard was granted to him by the Adjudicating Officer under the provisions of Section 454(4) of the Act on 03.06.2026 at 01:00 PM (IST). In this regard, a notice bearing ID: EH/ADJ/05-2026/MH/01635 dated 25.05.2026 was issued.
D. Rule 3(12) of the Companies (Adjudication of Penalties) Rules, 2014 provides that while adjudging quantum of penalty, the adjudicating officer shall have due regard to the following factors, namely:- (a) size of the company; (b) nature of business carried on by the company; (c) injury to public interest; (d) nature of the default; (e) repetition of the default; (f) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; and (g) the amount of loss caused to an investor or group of investors or creditors as a result of the default:
E. The E-hearing was attended by Mr. Abbas Jawadwala, Practicing Company Secretary on behalf of the noticee and reiterated the written reply.
i. He further submitted that while incorporation of ACWO Lifestyle Pvt Ltd, noticee inadvertently applied for second DIN. However, the MCA system did not give a notification/pop up message about the duplicate DIN.
ii. As the noticee does not have a technical knowledge, therefore, requested to take lenient view while imposing the penalty on the noticee.
F. On perusal of the suo motu adjudication application and submission made thereunder, it is observed that the default may have been committed due to lack of legal knowledge and professional assistance.
G. Thus, I am of the view that given the bonafide action on part of the Applicant in submitting the suo-moto adjudication application and the above-mentioned mitigating circumstances, the quantum of penalty shall be Rs. 25,000/- for first default and further penalty of Rs. 10/- for each day after the first during which such default continued.
H. Thus, the period of default is considered from 26.10.2021 that is the date of obtaining second DIN till 12.06.2026 that is the date of this order which amounts to 1691 days. The Applicant shall be liable to a penalty of Rs. 25,000/- (Rupees Twenty Five Thousand only) for first default and Rs.10/- per day for further 1690 days that is Rs. 16,900/- (Rupees Sixteen Thousand Nine Hundred only) aggregating to Rs. 41,900/- (Rupees Forty-One Thousand Nine Hundred only).
I. Now, in exercise of the powers conferred on the Adjudicating Officer vide Notification dated 24th March 2015, having considered the facts and circumstances of the case, show-cause notice sent and reply received thereto, I hereby impose a penalty of Rs. Rs. 41,900/- (Rupees Forty-One Thousand Nine Hundred only) under the penal provisions of Section 159 for default under Section 155 on the Applicant Director that is Mr. JIGNESH MAHENDRAKUMAR SHAH.
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 | JIGNESH MAHENDRAKUM AR SHAH having DIN as 02062231 | NA | 41900 | 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 Mumbai 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.
Chandan Kumar,
Registrar of Companies
ROC Mumbai I
