Companies (Adjudication of Penalties) Amendment Rules, 2024 introduces mandatory e-adjudication for penalty proceedings effective 16th September 2024.
Ministry of Corporate Affairs issued a notification on August 5, 2024, amending the Companies (Adjudication of Penalties) Rules, 2014, under the Companies Act, 2013 vide Companies (Adjudication of Penalties) Amendment Rules, 2024. These amendments, effective from September 16, 2024, introduce significant changes. Notably, Rule 3A mandates that all adjudication proceedings, including notices, filing of documents, hearings, and payment of penalties, be conducted electronically via a new e-adjudication platform developed by the Central Government. If an email address is unavailable for serving notices, they will be sent by post to the last known address and preserved electronically. Additionally, a revised Annexure replaces the previous one, detailing the Form No. ADJ for filing appeals pursuant to Section 454(5) of the Companies Act, 2013. This shift aims to streamline the adjudication process, enhancing efficiency and record-keeping. The original rules were published on March 31, 2014, and last amended on February 19, 2019.
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 5th August, 2024
G.S.R. 476(E).—In exercise of the powers conferred by section 454 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Adjudication of Penalties) Rules, 2014, namely: –
1. (1) These rules may be called the Companies (Adjudication of Penalties) Amendment Rules, 2024.
(2) They shall come into force from the 16th day of September, 2024.
2. In the Companies (Adjudication of Penalties) Rules, 2014,―
(i) after rule 3, the following rule shall be inserted, namely:-
“3A. Adjudication Platform.- (1) On the commencement of the Companies (Adjudication of Penalties) Amendment Rules, 2024, all proceedings (including issue of notices, filing replies or documents, evidences, holding of hearing, attendance of witnesses, passing of orders and payment of penalty) of adjudicating officer and Regional Director under these rules shall take place in electronic mode only through the e-adjudication platform developed by the Central Government for this purpose.
(2) In case the e-mail address of any person to whom a notice or summons is required to be issued under these rules is not available, the adjudicating officer shall send the notice by post at the last intimated address or address available in the records and the officer shall preserve a copy of such notice in the electronic record in the e-adjudication platform referred to in sub-rule (1):
Provided that in case no address of the person concerned is available, the notice shall be placed on the e-adjudication platform.”
(ii) For the Annexure to the said rules, the following Annexure shall be substituted, namely:-
Form No. ADJ
Memorandum of Appeal
[Pursuant to Section 454(5) of the Companies Act, 2013 and rule 4(1) of the
Companies (Adjudication of Penalties) Rules, 2014]
[F. No. 1/25/2013-CL-V(Part)]
MANOJ PANDEY, Addl. Secy.
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(i), vide number G.S.R. 254(E), dated the 31st March, 2014 and last amended, vide notification number G.S.R. 131(E) dated 19th February, 2019.
