This document details an appeal filed under Section 454(5) of the Companies Act, 2013, by CA Vijay Bora of M/S. Doogar & Associates, Chartered Accountants. The appeal contested a penalty order dated July 31, 2023, issued by the Registrar of Companies (ROC), West Bengal. The penalty was imposed for a violation of Section 140(2) of the Companies Act, 2013, which pertains to the auditor’s compliance obligations. The ROC had issued an adjudication notice on January 30, 2023, to the auditor, but no reply was received by the ROC. Consequently, the ROC, West Bengal, imposed a penalty of ₹50,000 on CA Vijay Bora for the non-compliance. The appeal was filed within the statutory 60-day period.
The appeal proceedings involved multiple hearing dates from February 2024 through November 2024, with adjournments frequently sought by the authorized representative. A final opportunity for hearing was granted on May 5, 2025. During this hearing, the authorized representative, Shri Mohit Surtani, PCS, was asked to demonstrate any infirmity in the ROC’s order that would justify modification under Section 454(7) of the Companies Act, 2013. However, the representative was unable to present sufficient grounds for altering the original penalty order.
As a result, the Regional Director, Eastern Region, exercising powers under Section 454(7) of the Companies Act, 2013, confirmed the penalty order dated July 31, 2023, issued by the Registrar of Companies, West Bengal. The order mandates that the auditor, CA Vijay Bora, must pay the ₹50,000 penalty from personal funds. The payment is required within 90 days from the date of receiving a copy of the order. The order also includes a cautionary note that failure to deposit the penalty within the stipulated timeframe will lead to further action under Section 454(8)(ii) of the Companies Act, 2013. The appeal was therefore disposed of, affirming the initial penalty.
Application No. RD/ER/454/ 30/23/Appeal/2251-53
BEFORE THE REGIONAL DIRECTOR, EASTERN REGION
MINISTRY OF CORPORATE AFFAIRS, KOLKATA.
IN THE MATTER OF
THE COMPANIES ACT, 2013
-AND-
IN THE MATTER OF
CA Vijay Bora (M. No. 102675)
M/S. Doogar & Associates, Chartered Accountants
304, Dalamal Tower, Nirman Point, Mumbai
400021, Maharashtra.
of company namely M/S. Maheep Marketing Pvt Ltd
(CIN: U51909WB1994PTC065456)
-AND-
IN THE MATTER OF
Application under section 454(5) of The Companies Act, 2013 for preferring an appeal against the penalty order dated 31/07/2023 of the Registrar of Companies, West Bengal passed for violating the Provisions of Section 140(2) of the Companies Act, 2013.
-AND-
CA Vijay Bora (M. No. 102675)
M/S. Doogar & Associates, Chartered Accountants
304, Dalama] Tower, Nirman Point, Mumbai
400021, Maharashtra.
………. APPELLANTS
Date of Hearing : 05.05.2025.
ORDER
1. The present appeal has been preferred under section 454(5) of the Companies Act,2013 read with the provisions of the Companies (Adjudication of Penalties) Rules, 2014 vide Form ADJ bearing SRN no. F66819210 dated 10/10/2023 against the penalty order dated 31/07/2023 for violation of Section 140(2) of the Companies Act, 2013 passed by the Adjudicating Authority i.e. Registrar of Companies, Kolkata, West Bengal dated 31/07/2023 communicated to the appellant vide letter no. ROC/ADJ/2023/065456/4018K-4018L dated 31/07/2023. The appeal was filed within 60(sixty) days as per Section 454(6) of the Companies Act, 2013.
2. As per the aforesaid adjudication order of the of Registrar of Companies, West Bengal, Adjudication notice for violation of section 140(2) of the Act vide letter no. LEGAL/ADJ /2023 /065456 dated 30/01/2023 was issued to the Auditor namely Shri Vijay Bora. In this regard, no reply was received by the ROC, West Bengal, from the Auditor for the aforesaid Adjudication notice as gathered.
3. Having considered the facts and circumstances of the case and after taking into account the factors above, ROC, West Bengal imposed a penalty of Rs. 50,000/- (Rupee Fifty Thousand Only) on the concerned Auditor, i.e., CA Vijay Bora (M. No. 102675) M/S. Doogra & Associates, Chartered Accountants pursuant to Rule 3(12) of the Companies (Adjudication of Penalties) Rules, under Section 140(3) of the Act, for failure to make compliance of the provision of section 140(2) of the Companies Act, 2013.
4. The hearing in the matter was fixed on 01/02/2024, 22/02/2024, 15/03/2024, 12/04/2024, 05/09/2024, 01/10/2024 & 04/11/2024 but the hearing was not concluded only adjournment was sought by the Authorised representative. One last opportunity was given to the Auditor on 05/05/2025. The Appeal was heard on 05/05/2025. The Authorised Representative Shri Mohit Surtani, PCS was asked to make submission regarding infirmity in the order of Registrar of Companies , the Authorised Representative could not made out any ground u/s 454(7) of the Companies Act, 2013 under which the order can be modified. Accordingly the undersigned by virtue of the power vested under section 454(7) of the Companies Act, 2013 read with the Companies (Adjudication of Penalties) rules, 2014 confirms the order of the Registrar of Companies, West Bengal dated 31/07/2023.
5. The Auditor of the company shall pay the amount of penalty from out of his own pocket. The amount of penalty shall be paid within a period of 90 days from the date of receipt of the copy of the order.
6. Further, if the Auditor fail to deposit the penalty amount within the prescribed time limit, action under section 454(8) (ii) of the Companies Act, 2013 shall be initiated against the Auditor.
7. The instant Appeal stands disposed of accordingly.
(Rakesh Tiwari)
REGIONAL DIRECTOR (ER)
Signed this the 03rd day of June 2025.
