Company Failed in Filing Annual Return: MCA imposes Penalty of Rs. 103600

On April 25, 2024, an adjudication order, No. ROC(M)/ATCL/Sr. No. 7/ADJ-ORDER/690-692, was issued concerning ALORA TRADING CO LTD for non-compliance with Section 92 of the Companies Act, 2013. The order entails penalties imposed on the company and its officers for late filing of the Annual Return for the financial year 2018-2019.

The Ministry of Corporate Affairs appointed an Adjudicating Officer to oversee penalties under Section 454 of the Companies Act, 2013. ALORA TRADING CO LTD, a registered entity under CIN: L70100MH1982PLC296275, failed to file its Annual Return within the stipulated timeframe, violating Section 92. Despite issuance of a Show Cause Notice, no response was received from the company or its officers.

The adjudication process found the company and its Managing Director, Mr. Veepul Kishore Gohill, liable for penalties. The penalty amount of Rs. 51,800 was levied on each, totaling Rs. 1,03,600. Additionally, failure to pay the penalty within 90 days may result in further fines or imprisonment as per Section 454(8)(i) and (ii) of the Companies Act, 2013.

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GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF THE REGISTRAR OF COMPANIES
100, “EVEREST”, MARINE DRIVE,
MUMBAI – 400 002
Website : www.mca.gov.in
e-Mail ID : roc.mumbai@mca.govin

No. ROC(M)/ATCL/Sr. No. 7/ADJ-ORDER/690-692

Date: 25 APR 2024

Order for Penalty under Section 454 for violation of

Section 92 of the Companies Act, 2013.

IN THE MATTER OF ALORA TRADING CO LTD
(L70100MH1982PLC296275)

Appointment of Adjudicating Officer: –

1. Ministry of Corporate Affairs vide its Gazette Notification No. A-42011/112/2014-Ad. II dated 24.03.2015 appointed the 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.

Company: –

2. The Company ALORA TRADING CO LTD bearing CIN: L70100MH1982PLC296275 (herein after known as ‘Company’) is a registered company with this office under the pr6visions of the Companies Act, 1956 having its registered office as per MCA master data at address 1, Ground Floor, Plot No. 37/39, Rajyog Building, Carpenter 1st Street, C P Tank, Girgaon, MUMBAI, Mumbai City,Maharashtra,400004,India.

Relevant Provisions of the Companies Act, 2013

3. Section 92- Annual return. —(1) Every company shall prepare a return (hereinafter referred to as the annual return) in the prescribed form containing the particulars as they stood on the close of the financial year regarding —

(a) its registered office, principal business activities, particulars of its holding, subsidiary and associate companies;

(b) its shares, debentures and other securities and shareholding pattern;

(c) its indebtedness;

(d) its members and debenture-holders along with changes therein since the close of the previous financial year;

(e) its promoters, directors, key managerial personnel along with changes there in since the close of the previous financial year;

(f) meetings of members or a class thereof Board and its various committees along with attendance details;

(g) remuneration of directors and key managerial personnel;

(h) penalty or punishment imposed on the company, its directors or officers and details of compounding of offences and appeals made against such penalty or punishment;

(i) matters relating to certification of compliances, disclosures as may be prescribed;

(j) details, as may be prescribed, in respect of shares held by or on behalf of the Foreign Institutional Investors indicating their names, addresses, countries of incorporation, registration and percentage of shareholding held by them; and

(k) such other matters as may be prescribed, and signed by a director and the company secretary, or where there is no company secretary, by a company secretary in practice:

Provided that in relation to One Person Company and small company, the annual return shall be signed by the company secretary, or where there is no company secretary, by the director of the company.

(2) The annual return, filed by a listed company or, by a company having such paid-up capital or turnover as may be prescribed shall be certified by a company secretary in practice in the prescribed form, stating that the annual return discloses the facts correctly and adequately and that the company has complied with all the provisions of this Act.

(3) An extract of the annual return in such form as may be prescribed shall form part of the Board’s report.

(4) Every company shall file with the Registrar a copy of the annual return, within sixty days from the date on which the annual general meeting is held or where no annual general meeting is held in any year within sixty days from the date on which the annual general meeting should have been held together with the statement specifying the reasons for not holding the annual general meeting, with such fees or additional fees as may be prescribed, within the time as specified, under section 403 .

(5) If any company fails to file its annual return under sub-section (4), before the expiry of the period specified therein, such company and its every officer who is in default shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of five lakh rupees.

(6) If a company secretary in practice certifies the annual return otherwise than in conformity with the requirements of this section or the rules made thereunder, he shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees.

Facts about the case: –

4. In terms of provisions of Section 92 of the Companies Act, 2013, the Company was required to file the Annual Return within sixty days from the date of Annual General Meeting held in pursuance of Section 96 of the Companies Act, 2013.

5. It was observed as per the MCA21 database, that the Company has defaulted in filing its Annual Return for the Financial Year 2018-2019. The company is in non-compliance of provisions of Section 92 of the Companies Act, 2013 for late-filing of Annual Return for the financial year ended 31.03.2019 with a delay of 18 days. The due date of filing was 29.11.2019, however, the Company filed its Annual Return on 18.12.2019 for the Financial Year 2018-19.

6. This office had issued a Show Cause Notice to the Company and its Officers in default on 28.02.2020 under Section 454 of the Companies Act, 2013 for adjudication of offence under Section 92(5) of the Companies Act, 2013.

Reply of the Company:-

7. No reply has been received by this office from the Company and its Officers in default till date.

8. The Show Cause Notice dated 28.02.2020, bearing consignment number “EM958806965IN”, sent to the Company was returned to this office bearing remark “Not Known”.

9. The Show Cause Notice dated 28.02.2020, bearing consignment number “EM958807016IN”, sent to Mr. Pappu Maria Ghodke was returned to this office bearing remark “I.P.” i.e. “Intimation Posted”.

10. The Show Cause Notice dated 28.02.2020, bearing consignment number “EM9588069821N”, sent to Mr. Dinesh Mafa Chauhan was returned to this office.

11. The Show Cause Notice dated 28.02.2020, bearing consignment number “EM958807002IN”, sent to Ms. Sangeeta Sunil Nerali was returned to this office bearing remark “Not Claimed”.

12. The Show Cause Notice dated 28.02.2020, bearing consignment number “EM958807020IN”, sent to Mr. Suresh Shantaram Naskar was returned to this office bearing remark “Addressee Moved”.

FINDINGS: –

13. As observed from the MCA21 database, the Company has failed in filing Annual Return within the time prescribed by the provisions of Section 92 of the Companies Act, 2013.

14. It is also observed that no reply has been received from the Company and its Officers in Default to the Show Cause Notice till date.

15. As per Section 454 of the Companies Act, 2013 read with Rule 3(11) of Companies (Adjudication of Penalties) Rules, 2014, if the Company and Officers in default fail to reply or neglect or refuse to appear as required, the adjudicating officer may pass an order imposing the penalty in the absence of such person after recording the reasons for doing so.

16. As no reply has been received till date and the violation of the said provision has been established from the MCA21 database, the following Order is being passed.

17. Further, as per the provisions of Section 2(60) Read with Section 2(51) of the Companies Act, 2013 Managing Director is being considered as Officer in Default. Hence, penalty is being levied on Mr. Veepul Kishore Gohill (Managing Director) and not on the noticees viz Mr. Pappu Maria Ghodke (Director), Mr. Dinesh Mafa Chauhan (Director), Ms. Sangeeta Sunil Nerali (Director) and Mr. Suresh Shantaram Naskar (Director).

ORDER

18. In exercise of the powers conferred on me vide Notification dated 24.03.2015 and having considered the facts and circumstances of the case and after taking into account the factors mentioned in the relevant Rules, I am of the opinion that penalty shall be imposed for the default related to non-compliance of section 92 of the Act. The delay, if any, in passing of the order is due to the legal complexities involved in the matter.

19. Having considered the facts and circumstances of the case and after taking into consideration the above-stated factors, I hereby impose a penalty of Rs. 51,800/-(Rupees Fifty-One thousand and Eight-Hundred only) on the Company and its Officers in default, each, as per table given below for violation of provisions of Section 92 of the Companies Act, 2013.

TOTAL PENALTY PAYABLE: – Rs. 1,03,600/-

(•) The period of violation of provisions under Section 92 of the Companies Act, 2013 is from 30.11.2019 till 17.12.2019. As per signatory details available on MCA21 portal, the abovementioned individual was the Officer in default during the period of violation.

(•) Due date of filing was 29.11.2019 and Annual Return was filed on 18.12.2019. Default period is thus calculated to be at a total of 18 days till 17.12.2019.

20. I am of this opinion that, the penalty is commensurate with the aforesaid failure committed by the Noticee/ s.

21. The Noticee/s shall pay the said amount of penalty through “Ministry of Corporate Affairs” portal and proof of payment be produced for verification within 90 days of receipt of this order.

22. Please note that as per Section 454(8)(i) of the Companies Act, 2013, where the Company does not pay the penalty imposed by the Adjudicating Officer or the Regional Director within a period of 90 days from the date of receipt of the copy of the order, the Company shall be punishable with fine which shall not be less than twenty-five thousand rupees, but which may extend to five lakh rupees.

23. Where an Officer of a Company, who is in default, does not pay the penalty within a period of 90 days from the date of the receipt of the copy of the order, such officer shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.

24. Therefore, in case of default in payment of penalty, prosecution will be filed under Section 454(8)(i) and (ii) of the Companies Act, 2013 at your own costs without any further notice.

25. Further, the company and its officers are hereby direct that the penalty amount shall be remitted from their own sources through MCA21 portal within 60 days from the date of receipt of order. The company needs to file INC-28 as per the provisions of the Act, attaching the copy of the adjudication order along with payment challans.

26. As per Section 454 of the Companies Act,2013 read with the Companies (Adjudicating of Penalties) Rules, 2014 as amended by Companies (Adjudication of Penalties) Amendment Rules, 2019, appeal, if any, against this order may be filed in writing with the Regional Director, Western Regional, Ministry of Corporate Affairs, within a period of 60 days from the date of receipt of this order, in Form ADJ setting forth the grounds of appeal and shall be accompanied by the certified copy of this order.

27. In terms of the provisions of sub-rule (9) of Rule 3 of Companies (Adjudication of Penalties) Rules 2014 as amended by Companies (Adjudication of Penalties) Amendment Rules, 2019, copy of this order is being sent to the Company and Noticee/s and also to Office of the Regional Director, Western Region, Ministry of Corporate Affairs.

(B MISHRA)
Adjudication officer and Registrar of Companies,
Maharashtra, Mumbai.