In a recent development, the Ministry of Corporate Affairs (MCA) has taken stringent action against Seva Parmodharmah Samajik Nidhi Limited for violating Section 117 read with Section 179(3)(g) of the Companies Act, 2013. The company, incorporated in Bihar, has been found guilty of not filing MGT-14 for multiple financial years, leading to a significant penalty being imposed by the Registrar of Companies.
Background of the Case: Seva Parmodharmah Samajik Nidhi Limited, registered under CIN U67190BR2016PLC026369, was incorporated on 21st March 2016, with its registered office located in Vaishali, Bihar. The company is now facing penalties for its failure to file MGT-14 in relation to resolutions for the financial years 2016-2017, 2017-2018, 2018-2019, and 2019-2020, thus violating Section 117(1) read with Section 179(3)(g) of the Companies Act, 2013.
Notice and Response: The Registrar of Companies issued a notice to the company and its directors on 19th December 2023, invoking Section 117 read with Section 179(3)(g) of the Companies Act, 2013. The company and its directors responded, attributing the alleged non-filing to oversight or inadvertence without any malafide intention. However, the response was deemed unsatisfactory by the authorities.
Penalty Imposed: Considering the facts and circumstances of the case, the Adjudicating Officer & Registrar of Companies at Patna has imposed penalties on Seva Parmodharmah Samajik Nidhi Limited and its directors for each financial year as outlined in the order. The penalties, calculated as per Section 117(2) of the Companies Act, 2013, include a base penalty of Rs. 10,000 and an additional penalty of Rs. 100 for each day of default, subject to a maximum limit.
Payment and Appeal: The company and its directors are required to pay the imposed penalties through e-payment within 90 days of the order. Failure to comply may result in further consequences. Furthermore, the parties have the option to file an appeal within 60 days from the date of receiving the order with the Regional Director (ER), Ministry of Corporate Affairs, Kolkata.
Conclusion: This stern action by the Ministry of Corporate Affairs underscores the importance of compliance with filing requirements under the Companies Act, 2013. Companies and their directors are urged to adhere to regulatory obligations to avoid legal repercussions and financial penalties.
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Government of India
Ministry of Corporate Attain
Office of the Registrar of Companies,
4th Floor, ‘A’ Wing, Maurya Lok Complex
Dakbunglow Road, Patna-800001
(0612)- 2216150/2950121
Order No. ROC/PAT/Inquiry/26369/1392 Dated: 31.01.2024
Order for penalty for violation of section 117 r.w. section 179(3)(g) of the Companies Act, 2013
SEVA PARMQDHARMAH SAMAJIK NIDHI LIMITED CIN: U67190BR2016PLCO26369
Company:-:-
1. Whereas, Company M/s. Seva Parmodharmah Samajik Nidhi Limited, CIN: U67190BR20167PLCO26369 (herein after known as Company) is a company incorporated on 21.03.2016 under the provisions of Companies Act, 2013 in the state of Bihar and having its registered office situated at H/o Sharda Devi, W/o Late Nanhak Singh, Jadhua Pokhara Near Prem High School, Hajipur Vaishali Bihar 844101, India as per MCA website.
Facts about the case:-
2. Whereas, during the course of inquiry it has been noticed that the company has defaulted in filing MGT-14 in respect of the resolutions under the provision of section 117 r.w. 179(3)(g) of the Companies Act, 2013 for the financial year 2016-2017, 20172018, 2018-2019 and 2019-2020 respectively leading to violation of the provisions of section 117(1) r.w. section 179(3)(g) of the Companies Act, 2013.
3. This office has issued notice under section 117 r.w. section 179(3)(g) of the companies Act, 2013 to the company and its directors vide letter dated 19.12.2023, for which reply has been received vide letter dated 17.01.2024 from the company and its directors stating that “such alleged non-filing would have occurred due to overlook or inadvertence and unavoidable reasons without having any malafide intention”, which in unsatisfactory.
4. Hence, it appears that the provisions of Section 117(1) of the Companies Act, 204.3 has been contravened by the company and its directors/officers in default and therefore they are liable for penalty under section 117(2) of the Companies Act, 2013.
Section 117(2):- If any company fails to file the resolution or the agreement under subsection (1) before the expiry of the period specified therein, such company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees and every officer of the company who is in default shall be liable to a penalty, of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.
5. It is seen that, the company being a Nidhi Company does not fall under the definition of small company as per provision of section 2(85) of the companies Act, 2013. Therefore the provision of imposing lesser penalty as per section 446B shall not be applicable in this case.
ORDER
6. Therefore, having considered the facts and circumstances of the case, and after taking into account the factors above, I hereby impose a penalty on Company, and its Directors as per table Below under section 117(2) of the Act for failure in compliance of section 117(1) r.w. 179(3)(g) of the Companies Act, 2013.
| Financial Year | Company/ Officers to whom penalty imposed | Date of Board of directors meeting | Date on which MGT-14 is required to be filed | No. of days in default | Penalty for defaults (Rs.) as per Section 117(2) of the Act | Maximum Penalty (Rs.) |
| 2016-17 | Seva Parmodharmah samajik Nidhi Limited |
02.09.2017 | 01.10.2017 | 2313 days (02.10.2017 to 31.01.2024) | Rs. 2,41,200 (10000 + 2312 X 100) | Rs. 2,00,000 |
| Shri Basant Chourashiya | 02.09.2017 | 01.10.2017 | 2313 days (02.10.2017 to 31.01.2024) | Rs. 2,41,200 (10000 + 2312 X 100) | Rs. 50,000 | |
| Shri Vinod Kumar | 02.09.2017 | 01.10.2017 | 2313 days (02.10.2017 to 31.01.2024) | Rs. 2,41,200 (10000 + 2312 X 100) | Rs. 50,000 | |
| Shri Maharana Pratap Chaudhari | 02.09.2017 | 01.10.2017 | 2313 days (02.10.2017 to 31.01.2024) | Rs. 2,41,200 (10000 + 2312 X 100) | Rs. 50,000 | |
| 2017-18 | Seva Parmodharmah samajik Nidhi Limited |
04.09.2018 | 03.10.2018 | 1946 days (04.10.2018 to 31.01.2024) | Rs. 2,04,500 (10000 + 1945 X 100) | Rs. 2,00,000 |
| Shri Basant Chourashiya | 04.09.2018 | 03.10.2018 | 1946 days (04.10.2018 to 31.01.2024) | Rs. 2,04,500 (10000 + 1945 X 100) | Rs. 50,000 | |
| Shri Vinod Kumar | 04.09.2018 | 03.10.2018 | 1946 days (04.10.2018 to 31.01.2024) | Rs. 2,04,500 (10000 + 1945 X 100) | Rs. 50,000 | |
| Shri Maharana Pratap Chaudhari | 04.09.2018 | 03.10.2018 | 1946 days
(04.10.2018 to 31.01.2024) |
Rs. 2,04,500 (10000 + 1945 X 100) | Rs. 50,000 | |
| 2018-19 | Seva Parmodharmah samajik Nidhi Limited | 08.09.2019 | 07.10.2019 | 1577 days (08.10.2019 to 31.01.2024) | Rs, 1,67,600 (10000 + 1576 X 100) | Rs. 1,67,600 |
| Shri Basant Chourashiya | 08.09.2019 | 07.10.2019 | 1577 days (08.10.2019 to 31.01.2024) | Rs, 1,67,600 (10000 + 1576 X 100) | Rs. 50,000 | |
| Shri Vinod Kumar | 08.09.2019 | 07.10.2019 | 1577 days (08.10.2019 to 31.01.2024) | Rs, 1,67,600 (10000 + 1576 X 100) | Rs. 50,000 | |
| Shri Maharana Pratap Chaudhari | 08.09.2019 | 07.10.2019 | 1577 days
(08.10.2019 to 31.01.2024) |
Rs, 1,67,600 (10000 + 1576 X 100) | Rs. 50,000 | |
| 2019-20 | Seva Parmodharmah samajik Nidhi Limited | 02.12.2020 | 01.01.2021 | 1125 days (02.01.2021 to 31.01.2024) | Rs. 1,22,400 (10,000 + 1124 X 100) | Rs. 1,22,400 |
| Shri Basant Chourashiya | 02.12.2020 | 01.01.2021 | 1125 days (02.01.2021 to 31.01.2024) | Rs. 1,22,400 (10,000 + 1124 X 100) | Rs. 50,000 | |
| Shri Vinod Kumar | 02.12.2020 | 01.01.2021 | 1125 days
(02.01.2021 to 31.01.2024) |
Rs. 1,22,400
(10,000 + 1124 X 100) |
Rs. 50,000 | |
| Shri Maharana Pratap Chaudhari | 02.12.2020 | 01.01.2021 | 1125 days (02.01.2021 to 31.01.2024) | Rs. 1,22,400 (10,000 + 1124 X 100) | Rs. 50,000 |
7. The noticee shall pay the amount of penalty individually for the company and its directors (out of own pocket) by way of e-payment (available on Ministry website www.mca.gov.in) under “Pay miscellaneous fees” category in MCA fee and payment Services within 90 (ninety) days of this order. The Challan/SRN generated after payment of penalty through online mode shall be forwarded to this office.
8. Appeal against this order may be filled in writing with the Regional Director (ER), Ministry of Corporate Affairs, Kolkata, within a period of 60 (sixty) days from the date of receipt of this order, in Form ADJ (available on Ministry website www.mca.gov.in) setting forth the grounds of appeal and shall be accompanied by a certified copy of this order (Section 454(5) and 454(6) of the Act read with Companies (Adjudication of Penalties) Rules, 2014}.
9. Your attention is also invited to section 454(8) of the Act in the event of non-compliance of this order.
(Aparajit Barua)
Adjudicating Officer &
Registrar of Companies-Cum-
Official Liquidator, Patna.
To,
1. Seva Parmodharmah Nidhi Limited
H/o Sharda Devi, W/o Lt Nanhak Singh Jadhua Pokhara,
Near Prem High School, Vaishali, Hajipur, Bihar 844101,
2. Shri Basant Chourashiya
3. Shri Vinod Kumar
4. Shri Maharana Pratap Chaudhari
Copy to:-
The Regional Director (ER),
Ministry of Corporate Affairs,
234/4 A.J.C. Bose Road, 21id MSO Building,
2nd Floor, Kolkata 700020, for information please.
